Lesson 1 · Foundations · Both · 20 min
Digital Brokerage Basics
How online broking works: accounts, orders, clearing, and the controls that keep trading platforms safe.
Objectives
- ▸Map the brokerage value chain from order to settlement
- ▸Explain cash vs equity ledger concepts for retail apps
- ▸Identify key risk controls (RMS, margins)
- ▸Relate India market participants at a product level
Brokers accept client orders, route them to exchanges, and ensure settlement obligations are met via clearing corporations. Digital brokers wrap this in apps—but still sit inside market infrastructure and capital rules.
- Order types: market, limit, stop—each with failure modes.
- RMS (risk management system): blocks orders that breach margins.
- Corporate actions: affect holdings and customer support load.
Key terms
RMSDematClearingSettlement cycleBuying power