The "Toolkit": Demat, Trading, and Bank Accounts

The Savings Bank Account (The Fuel)

This is the account you already have. It’s where your salary comes in and where your "ready-to-invest" cash sits.

• Role: It acts as the source of funds. When you want to buy a stock, the money travels from here to the market.

The Trading Account (The Shopping Cart)

Think of the Trading Account as your interface with the Stock Exchange. It’s the "Buy" and "Sell" buttons on your mobile app or website.

• Role: It’s where you place your orders. It tells the exchange: "I want to buy 10 shares of Company X at ₹500."

The Demat Account (The Digital Locker)

In the old days, if you bought a share, you got a physical paper certificate. Today, everything is digital. "Demat" is short for Dematerialized.

• Role: This is your digital safe. Once you buy a share through your Trading Account, it is "delivered" to your Demat Account for safekeeping. Even if your broker goes out of business, your shares are safe here because they are held by central government-regulated "depositories."