There are two types of Stock market orders – Buy and sell order. The stock price is decided by the buyers and sellers. The best buyer will stand the first amongst all. i.e. the prices would be in a descending order. The best seller would be the one who is expecting the least price. i.e the prices would be in an ascending order. We need to be connected to the stock market via a broker, as we cannot communicate with the exchange directly.
A trade happens when a buy and sell order match and a trade settlement takes place after the deal is executed, post the market close.
When a trader initiates a long position, he is expecting the prices to go up, and when a trader initiates a short position, he is expecting the prices to go down.
The shares are kept in a trader’s DEMAT account, which is nothing but a de-materialized format of the shares.
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