Trading capital is the amount of money a trader uses for trading. In the era of online trading, the trading capital needed and the cost of trading (brokerages + taxes) have gone down significantly, thanks to competition in brokers.
Many brokerage firms allow you to deposit small amounts of money to trade. In any case, you should never deposit more money to your 'trading account' than you would be willing to lose in the worst case.
Proper planned trades will help you minimise the risk of losing your trading capital and maximise the chances to increase it. A simple rule of thumb would be to never put more than 1% of your trading capital at risk in a single trade.
Usually, brokerages charge 10p to 50p per trade (taxes extra, payable to government)
What is trade?
When you buy a stock, the amount is deducted from your trading account and shares come to your Depository Account (DP Account). This is a single trade!
Similarly, if you sell a scrip without owning it which is known as Short selling, shares are first debited and so is the money too.. When later you make a counter trade viz a buy trade against this one, then shares get adjusted and money comes back to your trading account with additional profit or with deduction of loss.
A trader has to be very alert in case he opts to 'square off' viz exit his initial trade in that day itself = Intraday trade also known as MIS position.
Such position usually gets automatically squared off at 3:00pm (or 3:15pm in some cases) same day!
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