Stock trading refers to the buying and selling of shares in a particular company, if you own the stock, you own a piece of the company.

  • : stock trading is done on the basis of price matching and timing of orders of buyer and sellers through brokers which are connected to the exchanges.
  • : Stock exchanges will ensure the traders counter party risk through brokers. Brokers get the license to trade only after depositing specified amount to stock exchange. All the risks will be livid only to brokers. if there is any unfair trading occur means the stock exchange will settle the affected person and will take money from the broker’s deposit.
  • : People do stock trading to earn money whether it’s investment or trading, both intend to do earn money for them. Stock trading is highly lucrative when compared to other investing options, but the same time it involves high risk.
  • : Buying stocks from BSE and selling on NSE is possible provided 1.Broker has authority to trade on both exchanges 2.Intraday trading across exchanges are not possible 3.The company whose shares we are buying is listed on both the exchanges.
  • : If we quote high price to buy stock than current market price, then we will be given first preference and our order will be executed at the current market price.
  • : An order for trading in stocks can be placed online through the online software portal provided by the broker using the DEMAT account. There are 2 types of order- buy order and sell order validity of order- until the trade is executed.
  • : Long – Buying a share first and then selling the same is long position Short – Selling the share first and then buying is Short position Long Unwinding – Selling the shares to exit long position is long unwinding position Short Covering – Buying shares to exit short position is short covering position Based on analysis if share price is expected to go up then long position should be created (buy and sell), if share price is expected to go down then short position should be created (sell and buy)
  • : Analysing the amount of risk and returns involved inside, the stock trading can be determined as gambling or business. If risk is greater than return, it is gambling. In other way, if returns are greater than risk involved, then it is business.
  • : Stock Price is decided by the buyer and seller who are the participants in the share market. Both buyer and seller suggest a stock price and are placed in queue accordingly, if both prices matches then deal happens.
  • : Intraday trading refers to entering and exiting positions on the same day before the market closes. We are bound to close our position at the end of the trading day no matter it ends in profit or loss. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later.
  • : A short delivery happens when the exchange is unable to deliver shares you purchased to your demat account because the seller of the shares failed to do so.
  • : Trade plan is a entry, exit, and stop loss orders, it is necessary before doing trade. Entry, exit ,stop loss is nothing but risk and rewards. A good trade plan is needed to maximize the profit and minimize the risk involved in the trading.
  • : A company's stock price reflects investor perception of its ability to earn and grow its profits in the future. If shareholders are happy, and the company is doing well, as reflected by its share price, the management would likely remain and receive increases in compensation.

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