It is vital to trade with knowledge and discipline. Brokers are a must for trading as they act as a shock absorb-er if anything goes wrong and make sure that the exchange does not get into trouble with SEBI. A trading deal can only be made when the buyer and the seller agree to exchange at a fixed price. A trade settlement occurs only when a trade deal is executed by both the buyer and the seller.
These days, anyone can trade stocks with an online trading account and a DEMAT account. Profits can be made if the trader is certain about the change in share price, either increase or decrease. A long order and a short order can be placed based on the increase or decrease in the share price, respectively.
Short trades are intrday trades and must be executed within the same day, else the share will go to the auction market, which is often loss making.
A DEMAT account is a dematerialised account that will hold all the records of the shares owned by a person securely.
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