Demat account let’s investors hold & transact securities (like share certificates, debentures, bonds, government securities, mutual fund units etc.) electronically through a registered depository participant (NSDL or CDSL).
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A trading account is an account that a broker (like Acumen Capital) provides you to transact (buy or sell) shares during market hours. When you BUY a security, the money is debited from your bank account and the shares are credited in your demat account on T+2 days. Similarly, when you SELL your shares through your trading account, the same gets debited from your demat account and are then sold in the market. The proceeds of this sale are credited back to your bank account.
Thus, in order to trade in the stock markets, it is mandatory to have both a demat as well as a trading account.
