BSE or NSE which is better stock exchange for delivery or derivative trading

October 12, 2008

BSE is 133 year old and NSE is just 14 year old stock exchange of India but NSE is now the world’s third largest stock exchange in terms of transactions and dealings. If you are day trader or trading in future and option segment heavily, better you should stick with NSE. You can trade with high volume without too much unexpected result.

NSE is far better and fast to implement high technology for trading in comparison to BSE. NSE is popular with huge volumes as compared to BSE, as NSE’s bid-ask price are excellent compared to BSE.

FII can invest easily in NSE in comparison to BSE. BSE is more prone to scams. You should not expect any scams in future in NSE.

In the cash segment, where shares change hands, BSE had the first-mover advantage and in the futures segment, both exchanges started simultaneous trading in June 2000. Today, NSE has a virtual monopoly of the market with average daily futures and options trading turnover of Rs 45,827 crore this financial year, while BSE’s has slipped to around Rs20 crore.

Conclusion- If you want to trade in cash segment, you should use BSE as there are more actual seller and buyer of stocks for long term. If you are interested in F&O segment you should use NSE.

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