Bob HatchKite by Zerodha is a trading platform that is available both in the web version and mobile application format. The platform is great for beginners to mindfully start their investing journey. This application is majorly used for the trading of stocks.
How does trading take place on the Kite Application?
There are many reasons for a person to enter the stock market. First, they either want to earn quick money or generate wealth through long-term investments.
To understand the trading process better, let us understand what a CNC refers to. CNC refers to Cash and Carry investments. The option of CNC is provided when we are about to buy a share in the mobile application. The Cash and Carry option are used to denote the trading process where profits are made from the mispricing of the underlying asset and its future derivative. This method entails purchasing the underlying shares of the contract in the stock market for a long duration and holding it until the market is profitable.
On the other hand, the other option while purchasing shares is MIS. MIS refers to Margin Intraday Square Off. This MIS technique is instrumental when the trader is more interested in facilitating intraday trading. It refers to buying the stocks at a low cost and selling them the same day at a higher rate. When someone is involved in intraday trading, they have to be quick on their feet and make decisions.
Intraday trading proves to be risky. However, to avoid risks, there is a ‘Stop Limit Loss Order’ on the Kite Application. The Stop Loss Limit Order executes an exit from the shares if the market is going in the opposite direction. For example, one can set the limit price according to the loss they can pertain. If you buy a stock at Rs. 100 and you set the limit price to Rs. 95, your shares will be sold at the limit price to minimize the losses.
How To Open a Demat account on Kite?
A Demat or a dematerialized account on trading apps is the first and crucial step to start your investment journey.
- One requires three documents for the verification of their account. These documents include a pan card, electronic signature, and bank proof
- After the initial signing up with your mobile number, personal details are required to be filled in.
- There is a further payment basis on whether the user wants to trade in equities or commodities. However, both can be selected as well. This account opening fee is minimal.
- There will be a procedure to link bank accounts for easy transactions.
- After further uploading of documents and authentication of information, your Kite account is open and running for the trading process.
The whole step to launch one’s dematerialized account only requires 15-20 minutes on the web portal, and it takes 24 to 48 hours to initiate the whole process of trading. After the final verification, one can download the Kite Application by Zerodha from Google Play Store.
Features of ZerodhaKite
- There are 5 watchlists available in the mobile app. These watchlists provide for the investors to add the companies that they desire to track.
- In the watchlists, market-depth data can be accessed for every company. Important information provided in the data is the LTP (last traded price), percentage change. All this information enables the traders to make quick decisions on their feet when it comes to intra-day trading.
- One can also track their investments in their portfolios.
- Another great feature of the Zerodha app is that there are various applications integrated within it.
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