Before learning about online trading of shares in Nepal, you need to fulfill basic requirements for share trading such as bank account, demat acoount and others. So, we believe the following article may be helpful for you if you are a beginner in the share market of Nepal.
After you complete the necessary guidelines, you can proceed towards the online share trading.
What Is Online Share Trading?
Online trading is a technology where investors can buy and sell shares via computers, laptops, tablets or mobiles through the use of internet. Investors anywhere in the world will be able to trade by entering share purchase/sale orders through the internet.
By the use of online platform, the trader can place the orders or cancel them any time. Online Trading System has huge edge over the traditional system of placing your orders through brokers. Some of the major benefits of online share trading include:
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Benefits Of Online Trading Of Shares
1. You can place your trading orders from anywhere in the world.
2. It gives more control and flexibility over your investing decisions. You can execute or modify your trades instantly.
3. It provides hassle free trading experience without any outer interference. You can easily place your order to buy or sell stocks with a few clicks and at a much lesser time.
4. The cost of going to the broker or calling the broker repeatedly reduces.
5. Online Trading allows you to monitor your investments in real time.
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Online Share Trading In Nepal
The online trading system was launched two decades after the beginning of the capital market in Nepal. Nepal Stock Exchange (Nepse) started online trading system on Karthik 20, 2075. Finance Minister Dr. Yuvraj Khatiwada inaugurated the online trading in Nepal.
After the establishment of Nepal Stock Exchange in 2050 BS, the regular share market started. In the early days, member brokers used to shout and register orders and Nepse employees used to write the orders on the whiteboard. For a long time, shares have been traded on paper. From the year 2072 BS, paperless trading was started by converting the paper share certificates electronically.
The Trade Management System (TMS) has come into operation as a means of connecting investors to the system of brokers and Nepse. This allows investors to enter purchase and sale orders online. Brokers provide this medium to the investor’s computer, laptop, tablet or mobile. For online user name and password, you have to go to the broker once.
How To Buy & Sell Shares Online In Nepal?
In order to trade shares online, the investor has to go to the broker office and get the KYC updated first by filling the form. Investors cannot engage in online trading until the KYC is updated. Those who have chosen an online account can trade online. One with an offline account can only trade through a broker.
The broker verifies the KYC form, opens the investor’s account in the Trading Management System (TMS) and sends the username and password to the e-mail address. Investors will be able to trade using the trading limit and URL provided by the broker by resetting the password.
The broker office will also provide TMS Login URL. Through this URL, the investor can enter into Nepse Online Trading System (NOTS). Each broker has different TMS Login URL. To View the TMS Login URL of your broker, click the link below:
After you open the URL provided by the broker, the following screen appears. Click on ‘Forget Password‘ as highlighted by the green box in the image below:
After you click the ‘Forget Password‘, a new window appears as below. You need to enter the ‘Username‘ provided by your broker and your email address. You should be careful to enter your valid email address. Then, Click ‘Submit‘.
After you click ‘Submit‘, an email with the reset link for changing the password will be sent to you given email address.
After you open your inbox in your email address, you will receive the email containing the Reset password button. The green box in the image below highlights the Reset Password button.
After clicking on the ‘Reset Password’ button as above, a new window appears. Now, you should enter the new password and confirm the password by entering it again. This highlighted green box shows where you need to type your new password. Be careful to choose your password and follow the guidelines such as minimum one capital letter, minimum one special characters, minimum one digit, and password length of 7-14.
After the entry of the required password, Click on ‘Submit’ button.
After you reset your password, a window appears that shows the password has been updated successfully. Now you can enter into the TMS Login and begin your online trading of shares.
Nepse TMS Login
In order to visit the TMS Login, you should open the Login URL of your broker. If you do not know the login URL, click the link below:
Based on the broker number, the URL will differ. After you open the TMS Login URL, the following screen appears. Click your ‘User Name‘ [highlighted by the green box], ‘Password‘ [highlighted by the blue box] and ‘Enter Captcha‘ [highlighted by the red box]. Captcha is shown in your screen as below.
Nepse TMS Dashboard
After you login into the TMS, ‘Nepse TMS Dashboard’ appears. The sample picture below shows the TMS Dashboard.
How To Buy/ Sell Shares Online?
To post an order, go to ‘Order Management’ on the left side and click on Buy/Sell. Then the order entry screen will open. The buyer should choose ‘BUY’ and the seller should choose ‘SELL’. This is highlighted by the red box in the top right corner of the image below.
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How To Buy Shares?
If you want to purchase the shares, Click ‘BUY’ on the top right of the screen. A blue screen should appear after you select on ‘Buy’
Select ‘Equity’ in the share type. Now select the company by entering the stock symbol. Put the number of shares and the desired price on the same order page (based on the price range shown) and click ‘BUY’. This is shown by the green boxes in the image below.
Note: If any problems occur regarding the placement of orders, contact the broker and ask them for help.
How To Sell Shares?
Similarly, if you want to sell your shares, Click ‘Sell’ on the top right of the screen. A red screen should appear after you select on ‘Sell’
Follow the same process as above such as selecting the company by entering the stock symbol, entering the number of shares and share price at which you would like to sell. Then click ‘Sell’ as shown by the green box in the sample image below.
Note: To change or cancel the order in the meantime, go to Order Management, go to Order Book and click on Open Order. Click on the ‘Modify’ sign of your order, change the number or price you want to buy/sell and click on the place order, or cancel if you want to cancel by clicking on the cancel sign.
Current Market Data
Even if you don’t want to trade in the market at present, you can view the live market, market depth, top gainers and losers, charts and other important information about the stock market. This can be helpful in preparing for your future investment decisions.
Online Share Trading is not as complicated as it sounds. In fact, it makes trading far too simple. Once you get used to the trading process, you can execute your trades quickly and efficiently. You have full control over your trading actions. However, there are several downfall to online trading. Excessive buying and selling is one of them. Since, trading is a click away, you may tend to increase your trading activities to profit from each and every minor fluctuation. This can be dangerous as too much trading can lead to rash decision making and also incurs more expenses. So, be careful while executing your trades. Don’t get carried away.