How stock trading take place. the role of broker/exchange/sebi/govt/bank
How stock exchanges ensure the traders counter
party risk? *
Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? *
From Day Trading Point of View. You cannot buy a stock on BSE and then sell it the same day in NSE or purchase it on NSE and sell the same day on BSE.
What is long / short / long unwinding / short covering? *
If we buy a stock expecting the price of the share to go high then is said to be creating long position. On the contrary if we sell a stock expecting the price to go down it is called Short Position.
Selling the stock that is already bought is long unwinding and Buying a stock that has been already sold is Short covering.
Is stock trading is gambling or business? How? *
explain with risk reward ratio
Stock trading can be done as Gambling or Business.
If the stock trading is executed with knowledge and Discipline, it becomes Business.
Knowledge is aware of the risks and rewards and and executing the stocks only where the risk rewards, it becomes Gambling.
Risk : Reward is greater than 1 … Its a Business
Risk : Reward is less than 1… its Gambling
Stock price doesn’t affect the monetary aspects of a company, coz the stocks sold in primary market and that money has been used by the company, the stocks sold in secondary market and its price does not affect the company
Hi,
Those of your content is neat and clear. It will be useful to recall.
Thanks