How to invest in Pakistan Stock Exchange

How to invest in Pakistan stock exchange

In pure conceptual terms, there are two types of investments offered by PSX – Pakistan Stock Exchange:

  • Short-term investment
  • Long-term investment

Short term investment means the investor buys and sells shares every day when the market appears to be going up. This type of intuition develops once you study principle financial aspects behind stock trading.
These types of investors are also known as day traders. They can win or lose their investments daily; it all depends on how good their forecasting is. These traders spend their time analysing the market conditions for running a full-time stock trading profile.

Long term investment means that you keep the stock shares long enough to sell them at a higher price, or you get dividends every 3 months. This type of investment is good for the people who are busy and have less money – like students, doctors, engineers, and the working community.

How to invest in Pakistan Stock Exchange

Stock analysis is very important for investing in Pakistan stock exchange.

Truth be told, there are various benefits to investing in the stock market. Are you looking to make a solid investment for earning money? Here’s How To Invest In Pakistan Stock Exchange:

How to | PSX

To get a trading license with PSX, you have to go through a third-party brokerage that issues you a brokerage account. The following are some requirements for opening an account with a broker:

  1. CNIC
  2. Your bank account.
  3. Salary slip; if you are self-employed, provide a bank statement. This ensures swift credit history checks
  4. Other documents that don’t require an age restriction

How to Invest | PSX

  1. Visit your nearest Brokerage Firm

Prior to prominent brokerage holdings, it is strongly advised that you research the internet for understanding the kind of brokerage would work for you.

  1. Finish paperwork and provide all required documents
  2. Wait for 1-2 weeks. During this period, your broker account will be opened in the firm of your choosing, and you’ll be granted a license to trade with PSX-issued stock options

This process is typically a straightforward process. Initially, this process requires an individual to physically visit a brokerage firm. There, all identification documents and financial statements have to be submitted, along with an application form that the firm provides to open an account on their system.

Typically, all domestic trading software platforms look something like this:

How to do trading in PSX

After you get your trading license, you wouldn’t need to visit the firm that often. From this moment forth, all your dealings and trade logs will be handled online. By constitutional law, the firm is obliged to provide a daily check-and-balance report to their customers, so you’d be promptly notified about market trends, account activity and finances.

Do let us know in the comments if you have any questions about how to invest in Pakistan stock exchange.

Written by Ahsan Gardezi