Trading Transaction Terms

Stock Trading is a place where buying and selling a securities taking place Securities can be Stock, commodity, bonds etc… Securities are Stored in Depository
An investor is connected to the stock market through the broker. Brokers are governed by SEBI. SEBI is the regulatory authority for the stock market Exchange facilitate the stock trading Exchange and depositories are linked together Trading Account is an intermediary of the Stock Market, Bank Account, and Demat Account through the trading account orders buy/sell is placed.ordered can of Market order, conditional order and limit order Trading vocabulary to buy /sell is long/short position correspondingly Orders are classified into two Time condition and Price Condition.DAY – A Day order, as the name suggests, is an order which is valid for the day on which it is entered. If the order is not matched during the day, the order gets canceled automatically at the end of the trading day.IOC – An Immediate or Cancel (IOC) order allows a Trading Member to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market
Price Conditions Limit Price/Order – An order that allows the price to be specified while entering the order into the system.
Market Price/Order – An order to buy or sell securities at the best price obtainable at the time of entering the order.
Stop Loss (SL) Price/Order – The one that allows the Trading Member to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price. Until then the order does not enter the market.
The Primary Objective of a trader is to set up a trading plan to have a systematic way of trding.