This refers to how stock trading takes place, different types of orders, factors determining the stock price, various terminologies used in stock trading.

  • : A buyer and seller through their brokers buy and sell their shares online and cash is transferred online.
  • : Only with sufficient money in our demat account we can trade and this is how the counter party risk is ensured
  • : Stock trading is also business like any other business and that is why people chose stock trading.
  • : It is possible to buy stocks from BSE and sell at NSE, but we can do it only after settlement and it cannot be done for intraday transactions.
  • : If you quote a price higher or lower than the current market price, it is called limit order and this will be executed when the CMP reaches that level.
  • : A trader has to place his order through his demat account. There are 2 types of orders. Market order is the order in which we buy or sell at the current market price. A limit order is one in which we buy or sell shares only when it reaches a prespecified limit by the trader.
  • : Long is buying shares and short is selling the shares. Long unwinding is closing out long position by selling and short covering is closing out short position by buying.
  • : Some people may refer stock trading as gamble, but like any other business, stock trading is also a business and with proper knowledge and understanding we can succeed in trading.
  • : Demand and supply decides the price of a stock. When the demand exceeds supply, the price tends to go up. Likewise, when supply exceeds demand, the price tends to go down.
  • : Positional trade is one in which buy shares anticipating that the price will rise in the future and this can be carried on for days, weeks or months . An intraday trading is a trade which has to be squared on the same day itself, that is if you buy, you have to sell it on the same day and if you sell, you have to buy it on the same day.
  • : In a bearish market, a seller can sell the shares which he does not have in his account and then buy the same share when its price is much lower on the same day. In this way, a trader can make profit in bearish market also.
  • : Trade plan is the plan on how much capital you are willing to trade, how much you are willing to risk and what is the reward expected from the trade.
  • : Stock price do not affect monetary aspects of the company. On the contrary, monetary aspects of the company affect the price of share.
1 Comment
  1. Naresh 1 month ago

    Hi,
    Your work is good.

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