Stock trading is trading with knowledge and discipline. One can choose intrday trading or positional trading. First we need find an entry point for the stock and based on that we need to see whether to hold it for long or short and then fix the target price and stop loss. the trading has to be done keeping mind the risk reward ration that is trying to minimise the risk and increasing the profit.
Venkatasubramaniam Narasimhan, , Basics of Stock Trading, Intraday trading, positional trading, short, short long, Stop Loss, target price
Hi,
In response to your question
Your Question 1:: what is long unwinding and short covering
Long unwinding is a situation in which traders starts selling the security which means they have started booking profit by squaring off their open long position in the market. If long positions are sold off, the price will decrease and open interest will also decrease
Short covering is closing out a short position by buying back shares that were initially borrowed to sell.
Your Question 2 :: how stock exchanges ensure traders counterparty risks
SEBI regulates the stock market and ensures the counter-party risk by enforcing certain rules and regulations.
Thank u for clarifying