Trading account and Demat account.
Think of it like this 👇 A *Trading Account* and a *Demat Account* work together, but they do 2 completely different jobs. *1. Trading Account* This is your "buy/sell shop". - *Purpose*: Used to place orders to buy or sell shares, mutual funds, F&O, etc. in the stock market - *Works like*: Your shopping cart + payment counter. When you buy, money goes out. When you sell, money comes in - *Linked to*: Your bank account - *Example*: You say "Buy 10 shares of Reliance". The trading account sends that order to NSE/BSE *2. Demat Account* This is your "digital locker". - *Purpose*: Used to _hold_ the shares and securities you buy in electronic form. No physical share certificates - *Works like*: Your cupboard/locker. After you buy shares, they get stored here safely - *Linked to*: Your trading account and Depository - NSDL or CDSL - *Example*: After you buy those 10 Reliance shares, they are credited to your Demat account in 1 day *Quick Comparison Table* ...