This session again reminded me to be more disciplined while doing trading
How stock trading take place?: A broker is a person or medium who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or nowadays thru electronically. A stock exchange is where stock brokers and traders can buy and/or sell stocks ( shares), bonds, and other securities. SEBI is the regulator for the securities market in India. GOVT and BANKS don’t have many roles to play here.
How stock exchanges ensure the traders counter party risk?: By ensuring enough security amount is available in trader’s account or broker’s account before confirming the order.
Why do people choose stock trading?: People invest in stock market/trading to make more money out of it. Investing is important because it makes achieving financial goals easier.
Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation?: Yes, Share can be bought on BSE and can be sold in NSE. The price difference between exchanges is hardly anything, and if it is there, it is nullified and brought to the same level by end of the day by trading algos who arbitrage.
What happens if I quote high price to buy a stock compared to its current market price?: The trade will happen immediately since it’s the highest quoted buyer’s bid (1st in seller’s queue), but it will be traded at the price of least seller’s bid(1st in seller’s queue).
How to place order? Types of order? Validity of order? : once opening a demat acc and connected with a broker, an order can be placed, two main types of order buy order, sell order, a order is valid till 3.30PM of the trading day and all the remaining
