Buyer / sales gets in touch with a broker, and gives him all details of shares he want to trade.

Broker is responsible for placing traders order to exchange

Exchange is place where trading heppens
Each stock exchange had certain listed and permitted share that are traded on its floor.

Sebi defines the rules and regulations for all listed share and support the resolve the functional issues in share market

Govt provide all other required facilities via sebi

Banks are indirectly related to stock trading all money transfer to exchange and user via banks

Exchange use a bridge between exchange and trader called broker.
Exchange take some deposit from its broker for providing broking licence. Any dispute in the trade executed, first exchange settle the dispute with brokers deposit to the counter party and the broker should recover it from his trader

We can place order via call our broker and via online software
Types of order
Buy or sale
And
Limit order
Market value

And validity of order depend upon exchange closing time.
If order not excuted same day of are automatically cancelled by exchange before closing

Buy / sale a stock for long time is positional trading and buy /sale a stock for same day is interaday trading

Take all the trade related data before go for trade then clear picture about trade like
Buy/sale @ price quantity and profit and loss or risk and reward expected. All this help up to creat a trade plan.
And it’s a essential part of trade as business
It’s help understand and minimise the loss and also help to make profit in respect of risk taken

Yes monetary policy impacts stock price but this is temporary and largely a knee-jark reaction to the degree of change in intrest and vias VERSA the expectation.

1 Comment
  1. vignesh 6 years ago

    Hi sir,
    your answers are well framed, will be useful for recall.

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