User opens Trading account & DEMAT account through Broker. Broker provides user login access to their portal for trading. User places Buy/Sell orders which the broker forwards to exchange where it is settled.
You cannot buy a stock on BSE and then sell it the same day
in NSE or purchase it on NSE and sell the same day on BSE.If we do so, we will be charged 20% as penalty for the SHORT Order placed.
When we quote high price to buy a stock than current market price, exchange will consider that we are ready to pay “UPTO” the
high price we quoted but the trade will happen at the BEST SELLER’s PRICE only.
We need to login to our broker’s portal to place order, which can be either BUY/SELL order.
The order can be
– Market Order: The order is executed at the market Price.
– Limit Order: The order is executed when the buyers/sellers mentioned price met.
– Stop Loss Order: It is executed when reached the buy/sell threshold price is reached.
ORDER: Instruction sent to BROKER to buy/sell share in a specific exchange
TRADE: When the buy / sell order meets the counterparty’s price, the
order gets executed and it is called TRADE.
LONG POSITION: When we expect the share price go up, we buy the stock
now, hold it for a duration and sell it when the price go UP.
SHORT POSITION: Without having share if we SELL a STOCK, then its called
Short position.
INTRADAY: BUYING AND SELLING A STOCK WITHIN A DAY.
DELIVERY: BUYING TODAY AND SELLING AFTER FEW DAYS.
Gambling: If any event has more risk than return then its Gambling.
Business: If any event has less risk than return then its Business.
Knowledge: The ability to understand/derive the RISK and REWARD.
