Trading Procedure
Market Guide · guide 4 of 7 · Intermediate · about 11 min
Guide 4 of 7 · Place and settle a trade
Trading procedure: from a funded account to a settled trade
Opening a broker account, funding it, the order types NEPSE's trading system accepts, market hours and price bands, what happens between the match and T+2, and every rupee of cost on a buy and a sell — with a worked example.
On this page
The whole process at a glance
Eight steps; the first two happen once.
Open a trading account
With a SEBON-licensed broker; needs a Demat and PAN.
Fund it
Bank transfer or connectIPS to the broker's collateral account.
Decide what and why
Results, dividend record, price level, your exit.
Place the order
Symbol, quantity, price, on the TMS.
Match
NEPSE matches by price, then time.
Contract note
Broker confirms price, quantity and charges.
Settle on T+2
Shares to the buyer's Demat, money to the seller.
Record it
Your log or Own Portfolio: cost, reason, exit plan.
Opening a trading account
Any licensed broker; the login is to NEPSE's Trading Management System (TMS).
You need
- Demat account (BOID) — the broker settles trades into it.
- PAN — mandatory for a trading account.
- Citizenship, photos, bank details — the same set as the Demat.
- Client agreement and KYC — the broker's forms.
Choosing a broker
- Commission is fixed by NEPSE — every broker charges the same slabs, so choose on service.
- Fund transfer and payout speed — connectIPS support, how fast sale proceeds reach your bank.
- Support — a dealer who answers the phone during market hours matters on the day a password fails.
- Research and alerts — a bonus, not a reason.
You receive a TMS login (web and app) within a day or two. The TMS is NEPSE's own trading platform served through your broker — every broker's screen looks the same.
Funding the account
Money must be with the broker before a buy order is accepted.
Bank transfer
To the broker's collateral account; upload the voucher in the TMS or send it to the broker. Same-day credit during banking hours.
connectIPS / wallets
Instant collateral load from inside the TMS where the broker supports it; small per-transfer fee.
Cheque at the office
Credited once cleared, so plan a day ahead.
Placing an order
Limit orders, the daily price band, and what the order book tells you.
| Order type | What it does | Use it when |
|---|---|---|
| Limit (the default) | Executes only at your price or better. Buy at 500 fills at 500 or lower; sell at 500 fills at 500 or higher. | Almost always — you control the price. |
| Market | Takes the best available price immediately, across as many price levels as needed. | Liquid stocks when getting filled matters more than the last rupee. |
| Stop-loss | Becomes a limit order when the price touches your trigger. | Protecting an open position without watching the screen. |
| Validity: Day / GTC | Day orders expire at the close; good-till-cancelled orders stay for the period you set. | GTC for a price you are willing to wait for. |
Symbol and side
Type the symbol (NABIL, not the company name), choose Buy or Sell. The order book shows the best five bids and asks with quantities — that is the price the market is willing to trade at right now.
Quantity and price
Any quantity from one share upward (orders under ten shares trade in the odd-lot session). The price must sit inside the day's band: ±10% of the previous close during continuous trading, ±2% in the pre-open.
Review and confirm
The TMS shows the estimated amount including commission and fees. Confirm; the order gets a number and sits in the book until matched, cancelled or expired.
Match and contract note
Orders match on price first, then time. A partial fill is normal on thin stocks. After the close the broker issues a contract note with the exact price, quantity, commission, fees and tax.
Market hours, circuit breakers and T+2
Sunday to Thursday; Friday and Saturday closed.
The settlement cycle
Trade day
Matched on NEPSE; contract note issued. Seller submits the EDIS in MeroShare (by T+1).
Clearing
CDSC nets every trade; the buyer's money must be with the broker.
Settlement
Shares credited to the buyer's Demat; net proceeds paid to the seller.
Costs: every rupee on a buy and a sell
Commission slabs set by NEPSE, plus the SEBON fee, the DP charge and capital-gains tax.
| Trade value | Broker commission |
|---|---|
| up to Rs 50,000 | 0.36% |
| Rs 50,001 – 500,000 | 0.33% |
| Rs 500,001 – 2,000,000 | 0.31% |
| Rs 2,000,001 – 10,000,000 | 0.27% |
| above Rs 10,000,000 | 0.24% |
| Minimum | Rs 10 per trade |
| Other charges | Rate | On |
|---|---|---|
| SEBON fee | 0.015% | Every trade, both sides |
| DP charge | Rs 25 | Each sale, per company |
| Capital-gains tax (individuals) | 5% held ≥ 365 days · 7.5% held less | Profit on a sale; withheld by the broker |
| Capital-gains tax (companies) | 10% | Profit on a sale |
| Dividend tax | 5% | Cash and bonus dividends, withheld at source |
Worked example: 100 shares at Rs 500, sold at Rs 560 after 200 days
| Line | Buy | Sell |
|---|---|---|
| Trade value | 50,000.00 | 56,000.00 |
| Commission (0.36% / 0.33%) | 180.00 | 184.80 |
| SEBON fee (0.015%) | 7.50 | 8.40 |
| DP charge | — | 25.00 |
| Capital-gains tax (7.5% of the net gain) | — | ≈ 419.00 |
| You pay / you receive | 50,187.50 | ≈ 55,362.20 |
| Net profit | ≈ Rs 5,175 on Rs 50,187 — about 10.3%, against a 12% price move | |
Risk rules that survive contact with the market
Four numbers to decide before the first order, and four habits after.
Risk per position: 2% of capital
Position size = (2% of capital) ÷ (buy price − stop price). Rs 200,000 capital, buy 500, stop 460: risk Rs 4,000 ÷ Rs 40 = 100 shares.
A stop for every trade
Decide the price that proves you wrong before you buy, and sell there without renegotiating.
No more than 15% in one company
And at least three sectors. A single bad quarter then costs a dent, not the year.
Write it down
Reason to buy, target, stop, date. Review monthly; the log will teach you what your feelings will not.
What to remember
- Orders are placed on NEPSE's TMS through your broker, Sunday to Thursday: pre-open 10:30–11:00, continuous trading 11:00–15:00.
- Prices move within ±10% of the previous close in continuous trading (±2% in the pre-open); limit orders keep you in control of the price.
- Trades settle on T+2: bought shares reach your Demat, and sale proceeds reach you, two trading days after the trade.
- Commission runs from 0.36% down to 0.24% by trade value (minimum Rs 10), plus the 0.015% SEBON fee, Rs 25 DP charge per sale and capital-gains tax of 5% or 7.5%.
Marked as read on this device — the guide home shows your progress.
About this guide. Written for investors in the Nepal Stock Exchange. Fees, tax rates, market hours and price bands follow the schedules published by NEPSE, SEBON, CDSC and the Inland Revenue Department and change from time to time — confirm the current figure with your broker or depository participant before you act on it. Nothing here is investment advice.