1. What is Online trading?

Online Trading is a service offered on the Internet for purchase and sale of shares, futures/options, depositories, etc. In the real world you place orders with your stockbroker. In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds. In short, Online Trading is an extension of the old trading system, enabling you to trade through the help of high technology. This not only avails you all the benefits of the old 'Offline' Trading (the usual way of trading till very recently), but also avails you of many advantages which are unique to Online Trading only.

2. What are the institutions where Dynamic offers Internet trading?

Dynamic offers you access to Stock Exchanges NSE and BSE; the depositories, NSDL and CDSL; the Commodity Exchanges, NCDEX and MCX. Thus, Dynamic provides a one-window facility where you can avail all the institutions and all the facilities of trading in the Capital and commodity market.

3. Who is eligible for this service ?

Anyone who is interested in trading with us. You will have to register with us, and once you are registered with us, you will be able to avail of Online Trading facilities on our site.

4. How long does it take to open an account ?

If all your documentation are in order, the Client Registration process can be wrapped in a single working day. Usually, though, it may take a little more time. You would also need to open a Demat account for Online Trading, and you can open that account with us, with our designated bank HDFC, or from any bank of your choice.

5. Do I get any intimation once my account is opened ?

Once your account is approved, you will be intimated by Registered mail or email. Please refer to Terms and Conditions to know which are the valid ways of communications.

6. Do I need to activate my account ?

Once you are registered with us, you will be intimated about your User ID and Password for your user account for Online Trading. You can enter and use your account with your User ID and Password, as and when you want.

7. Is it necessary to open bank accounts with designated banks? What is the advantage of opening an Internet banking account with your banking partners ?

Although you can open your Demat Account with any bank of your choice, if you open your account with us or with our designated HDFC Bank you can avail yourself of faster credits, smooth flow of transactions and early commencement of trading. You can transfer funds through online instructions into the bank account of Dynamic and commence trading immediately. Further, if we have to make a payment to you, funds can be credited to your account by us by issuing online instructions.

8. Do you offer DP facility? Is it necessary to open a Demat Account with Dynamic ?

Yes, we offer DP facilities. However, we do not offer Demat account. You can open your Demat account with any bank, or our designated HDFC bank.

9. What if I already have a bank and demat account with your designated partners ?

Great! You can utilize the same bank and demat account to transact with Dynamic. Please mention the details in the account opening form and the same will be linked to your Dynamic trading account.

10. Do I need to maintain a minimum balance in my bank account ?

Yes, in case of HDFC bank account, an average quarterly balance of Rs. 5000 has to be maintained. In case of other bank accounts also the same minimum quarterly balance will apply.

11. What is a Payment Gateway ?

Your Dynamic online trading account is linked to your bank account and you can transfer funds online using Payment Gateway through Internet. Currently Dynamic has tied up with HDFC for this facility. This facility will soon be extended for other online banks.

12. Is there any limit on the amount that can be transferred using Payment Gateway? What is the minimum amount that can be transferred?

No, there is no limit, as the funds will always be transferred in a secure and online mode from respective bank to Dynamic's account. The minimum that can be transferred per transaction should be at least Re 1 and there is no transaction charge.

13. Can I withdraw the amount allocated for trading ?

Yes, for all withdrawal requests placed before 6 p.m. of a working day, Dynamic will credit your bank account the following day. Withdrawal requests received after 6 p.m., Dynamic will credit your bank account on following day of the next day i.e. (T + 2).

14. What happens if the Internet connection drops while I am transferring funds over the Net ?

Kindly check your account balance by logging on to www.hdfcbank.com to see if the transaction was executed. Alternatively, you can also check if your Buying power has been increased. For every successful transaction you will be displayed a transaction number.

15. How do I start trading ?

Once you have received your registration, you can login to the online trading site at www.dynamiccares.com. Provide your member id and password. Click on the 'Online Trading' menu. Thereafter you can follow the guidelines provided on the website.

16. What is my trading limit ?

Trading limits are defined as per your gross exposure limits at any point of time. These limits are decided at the outset based on the information and documentation received by us at the time of registration. It is subject to fulfillment of margin conditions and other rules of trading as per the parameters agreed between us mutually.

17. I want to buy some shares, I do not have any money in my bank account, what do I do?

You will need to give a cheque to Dynamic and based on your cheque amount you will be given the buying power and your trading limits will be set.

18. Can my trading limits be enhanced online ?

Yes, you can transfer funds from your bank account through payment gateway and we will increase your limits online. Alternatively, you can simply walk in to any of our branches and give a cheque. Your trading limits will be increased immediately.

19. Can I buy any shares ?

You can buy and sell all shares that are tradable in the Compulsory Dematerialised form on the National Stock Exchange (NSE).

20. Can I modify/cancel my order ?

You can modify or cancel your order as long as the original order placed by you has not yet been executed.

21. Can I place orders after market hours. Can I modify / cancel them?

Yes, you can place orders after market hours. These orders will be for the next trading date. These orders will be accepted without any Limits or Demat validations. On next trading date, these orders will be validated against Limits and Demat balance and only if the same is available, the orders will be forwarded to the exchange, else they will be rejected. You can modify or cancel these orders by clicking on the 'offline' link in Order Book.

22. Do I get online confirmation on orders and trades?

Yes, you will get online confirmations in the 'Order Book' / 'Trade Book' in the Trading window Also the messages are displayed at the bottom of the screen which gives instant status of your orders.

23. What is Normal Trading ?

Exposure of 4 times will be given to you for trading depending on various parameters. Incase of Buy position: You will have to pay the balance amount on the same day i.e. T day itself. Failing which, you will not be allowed to take further positions next day. Incase of Sell Position: The same will be carried forward till T + 1 evening. We would request you to deliver the shares before T + 1 evening else the shares will be auctioned. Delivery of shares must be done by issuing an instruction favouring Dynamic and this transfer of shares should be done before T + 1 day end. Alternatively you can give us a standing instruction to debit your Demat account. You will have to square off the sell positions on or before T + 1 market closure by placing Square off orders.

24. What is Margin Trading ?

In Margin Trading, unlike cash trading 100% funds are not blocked at the time of order placement. Margin trading provides you with the capital to become a much more active investor, so you can achieve your wealth creation goals far earlier than you ever thought possible. You will have access to a far greater range of investment opportunities because you are not limited to using your own capital. Exposure of 4 - 6 times will be given for trading depending on various parameters. Margin trading which is also known as Intraday trading if you place a buy order, you will have to place a sell order by the end of the day or vice versa. The transaction placed by you in Margin either needs to be squared off or needs to be converted to Delivery before the end of the settlement. We would request you to compulsorily square off all your open positions before 3:00 p.m. or else our system will do auto square off for all such positions. You will also have the option to take/give delivery of buy/sell position respectively if sufficient cash/securities is available. However the same will be allowed only upto 3.00 pm.

25. When do you release the margins blocked on margin positions?

When the margin position is closed out (either by squaring off or converting to delivery), the proportionate margin blocked on the position so squared off is released back and added to the limits.

26. What is Cash Trading ?

4 Cash trading is basically delivery based trading wherein 100% Funds/Shares are bolcked at the time of placement of the order. i.e. if you want to buy shares you should have the entire amount of funds in your cash limit and if you want to sell shares the same should be available in your demat account. 4 For sell positions, your trading limits will be increased immediately with the sell trade value. This will enable you to take further positions in the market. Cash product will facilitate Buy today and Sell tomorrow concept. Buy position is carried forward till T + 1 end of day. The same can be viewed in security projection. You can square off this position if required before T + 1 market closure. On square off, your profit and loss will be adjusted accordingly in your trading limits.

27. What if I fail to deliver shares on T + 1 ?

Your shares will be auctioned and you will have to bear the charges.

28. Can I Square off my positions ?

Yes, you can square off your positions within the same settlement by clicking the 'Square Off' link on the Net Positions screen Note: You need to square off all your positions before market closure. In case any of the sell positions remain open, your position will auctioned and all the charges will be will be borne by you.

29. What is a delivery based transaction ?

Delivery based transaction is one where it results in actual delivery of the underlying scrips. These transactions are undertaken by long-term investors who desire capital appreciation in their investments.

30. What is a square-off transaction?

A square-off transaction is one where the transaction is done without any intention of delivery of the underlying scrips. These orders are placed within the same settlement. The net difference is paid by/ received by the customer at the end of the settlement.

31. What is a settlement?

A settlement cycle on the Stock Exchange is an account period for transacting on securities. At the end of the account period, the obligations of each client are calculated and these obligations are settled.

32. What is a rolling settlement?

A rolling settlement is an account period for transactions in securities on the Stock Exchange where trades are settled on the third day. This happens on a continuous basis with pay-in/pay-out taking place on the second day after the trade.

33. What is a price band ?

Price band is the price limit within which the price of the security is allowed to rise or fall during the day. Price bands are set by the Stock Exchange and are applicable on the previous day's closing price.

34. What is an auction ?

The Stock Exchange is rigorous in the enforcement of its settlement schedules in terms of timely receipt of funds and securities as well as in the handling of short and bad deliveries. All short deliveries and unrectified bad deliveries of shares are put up for auction on the pay-out day. This is to ensure that the buying member receives the securities on the pay-out day. The Stock Exchange purchases the requisite quantity from the auction market and delivers them to the buying Trading Member. These stocks are bought at a higher price than the market price, and the price premium is borne by the seller for failure to deliver the shares

35. What gives rise to an auction ?

There are three factors, which give rise to an auction: a. Short deliveries b. Un-rectified Bad Deliveries-this is relevant only in respect of shares in physical form. c. Un-rectified Company Objections.

36. What happens if the shares are not bought in the auction (on NSE) ?

If the shares cannot be bought in an auction, the transaction is deemed to be closed out at the higher price of the following: a price which is 20% higher than the last traded price of the scrip OR the highest traded price of the scrip on the NSE from the relevant trading period till the close out day.

37. What is a contract note ?

Contact note is a statement of confirmation of trades done on a particular day. It is a prescribed format and manner, establishing a legal relationship between the client and the member in respect of all trades stated in the contract note.