Online Share Trading in Nepal: How to buy and sell shares in Nepal?

Online share trading is done in the secondary market. The secondary market is the platform where buyers and sellers meet each other to buy and sell shares virtually. Online share trading is done through the TMS (Trade Management System) account, accessible on devices such as laptops and smartphones. Online share trading in Nepal is performed from 11 am to 3 pm, 5 days a week (From Sunday to Thursday), with exceptions on national holidays. Before involving in online share trading you must have the following things:

1. Basic Requirements for Share Trading
2. Basics things to know before starting investment in Share Market

Having basic requirements and basic knowledge are not sufficient to succeed in the share market. You must have technical analysis and fundamental analysis skills to analyze market trends and future predictions. However, In this blog, you will learn the step-by-step process of Online Share Trading in Nepal.

Login to your TMS account

Every broker has a unique Broker number provided by the NEPSE. If you don’t know your broker number you can select it from the list of brokers in Nepal with the TMS URL we have listed on our site.

STEP 1: Log in to your TMS account. 

The URL format for TMS login: https://tms[Broker number].nepsetms.com.np/login. Example: Broker number 58, the URL for this broker is https://tms58.nepsetms.com.np/login.

STEP 2: Your TMS login page will appear as below. Enter the Client Code/ User Name, password, and Captcha correctly. Click login

STEP 3: After login, you will see “NEPSE TMS DASHBOARD” as below.

How to start online share trading in Nepal/buy and sell shares?

To buy and sell shares, go to “Order Management” → Click “Buy/Sell” below screen will appear. To purchase shares click “BUY” If you want to sell click “SELL” on the top right corner of the page.

How to buy shares online?

To buy shares online follow the given steps:

STEP 1: A blue dashboard will appear as shown below after clicking on the “BUY” button.

STEP 2:  While placing a buy order you can place an order in two ways Limit order and Market order.

• Limit order: In limit order, you can set a price on which you prefer to buy the share. If any seller places a sell order at the same price, then your order will execute.
• Market order: Market order is where you buy shares from the market instantly at the best price available if the desired amount of shares are available.

STEP 3: There are two options “LMT- Limit Order” and “MKT- Market Order” under the “Order Type“. let’s place a limit order.

Now enter the symbol or name of the institute in the “SYMBOL” section. Enter the quantity of the Share Under “QTY”,  and enter the price under the “PRICE” section as shown below. Click the “BUY” button.

STEP 4: When you click “BUY” you will get a notification on the top right corner of the screen “New order request has been successfully placed” as shown in the image.

Note: If you have chosen a limited order, remember that placing an order doesn’t mean you have purchased shares. Your shares will be bought only if any seller places the sell order at your price and also meets the quantity of shares willing to buy.

It will take 2-3 days to transfer the share to your account you can check it from the Meroshare account.

How do you sell shares online in a TMS account?

NOTE: Before selling shares check how many shares you have, Click “Broker Back Office” → “DP Holdings”. Now you can see the quantity of your shareholding as shown in the image below.

It is important because “if you place a sell order for more shares than you own, you will face a closeout penalty. Therefore, you must complete EDIS after selling the shares. If the amount is insufficient during the eDIS repayment, a 20% penalty of the total amount will apply.”

Step 1: After you click on the sell button a red TMS dashboard will appear as shown below. To buy shares online you must have collateral in your account. You can load Collateral in your NEPSE TMS account if there is no collateral.

STEP 2: Enter the Symbol of the institution you want to sell under “SYMBOL”, quantity, and enter the price of the share for sale.

STEP 3: As shown in the image the table consists of two sections: “TOP 5 BUY” and “TOP 5 SELL”.

The blue table shows the data for buy orders and the red table shows the data for sell orders placed with different quantities and prices.

In the first row, 4 buy orders are placed for 132 units of shares, asking price is 461 and in the same row, 1 sell order is placed for 18 units of shares at the price of 461.9.

STEP 4: Suppose you own 200 units/kitta shares of Nabil Bank. If you place a sell order at the highest asking price at that time i.e. Rs. 461/kitta then your sell order will be executed instantly and your shares will be sold. Alternatively, if you set a higher selling price than the asking price, your sell order will remain open for the day until the order is executed. When your order matches a buying price, your shares will be sold. After selling the shares don’t forget to perform the EDIS i.e. transferring the shares to the buyer.

You may also like:

• Common mistakes to avoid when trading stocks
• How much should you pay as broker payment
• Basics to know before starting investment in Share Market

FAQs

What is stock market trading?

Stock market trading involves the buying and selling of shares from publicly traded companies in NEPSE to gain profit from price fluctuations. Through trading, you can own a portion of a company and potentially earn money as its value increases. At the same time, trading carries risks and requires careful research and strategy.

How to sell penny stocks?

To sell penny stocks, follow these steps:

1. Open a brokerage account.
2. Log in to the trading platform.
3. Place a sell order by specifying the quantity and desired price.
4. Review and confirm the sell order.
5. Monitor the transaction for execution.

Can I sell shares without a broker?

Yes, you can buy or sell shares without a broker by using a direct stock purchase plan (DSPP). The company’s transfer agent manages the transaction in this process.

Best online brokers for stock trading?

Many brokers can help you with share trading, you can find the best broker in Nepal based on customer service, responsiveness, and investment skills.

When to sell stocks?

You can sell stocks in the following situations:

• when you’ve reached your profit target.
• When there’s a significant change in the company’s fundamentals, or if the stock becomes overvalued.
• When external factors impact the stock’s performance or if it falls below your predetermined loss limit.

Where can I buy and sell stocks?

You can buy and sell stocks through online brokerages, traditional brokerage firms, and direct stock purchase plans (DSPP).