Trading of shares in a stock exchange takes place through Registered Stockbrokers. The brokers have the caution deposit from the traders. if required stock exchange will debit the money from the broker’s caution deposit, and the broker will charge to the traders.
You can place buy/sell order using Market/Limit Order. Order valid for the day.
You can have
Long position is to buy the stocks first and then selling it later.
Short position in the Stocks first (without having stocks in account) and then buy them before the final settlement (3.30PM)
Long Unwinding: Close out position of Long, i.e Selling the stocks to exit the long position.
Short Covering: Close out position of Short, i.e Buying back the stocks to exit the short position.
One need to have Trade Plan is to define which stocks needs to brought/sold, which instrument to be used, what is the margin( to understand the risk) and when to exit. It is essential to understand and minimize the risk and monitor the market movement to the plan to determine the exit
Hi,
Your work is good.