in this section i can able to differentiate between the buisness and gambling , the price of the stock, counterparty risk , role of broker ,role of exchange,

  • : for stock trading we should first open the demat account with broker of stock exchange . these brokers are regulated by SEBI which is to facilitate the trade between the client and exchange . with the help of demat account with the brokers we can buy or sell the shares with the exchange and it becomes a stock trading . when the deal finished it is known as settlement
  • : All the clients are connected to the exchange only through the brokers. These brokers deposit some money with the exchange . where the client faces any risk it is the duty of exchange to counter party the risk with the help of deposited money by the broker
  • : people choose the stock trading becaouse it is the way where we can make profit by buying or selling the shares of the company without entering to the management or workload of the company . by stock trading the other benefit is the firms or company can also raise their money without waiting for any loan or some other which takes time and procedure .
  • : No it is not possible to buy a share in bse and sell it in nse.. because both are different exchanges and the trade to be finished only in one market
  • : when we quote a higher price than the market price then your order will be executed first because in terms of buyers the orders are arranged in descending order of price quoted by the buyer compared to the current price of the market
  • : we can place the order using our trading account with the broker . there are two types of order its long and short which means buy and sell respectively .
  • : long is the buy of a stock and short is a sell of the stock long unwinding is selling of stock which have been hold it for a long time either to make the profit or to avoid loss . Short covering is the buy of the stock that were made short position in the opening of market .
  • : a gambling or buisness can be differentiated by risk and reward ratio . in buisnes the reward is greater than the risk and in gambling the reward is greater than the risk and where as one who doesnt predict the risk and reward is purely a gambler , so stock trading depends upon the who trades with knowledge and without knowledge
  • : a stock price is decide by the market that is by both supply and demand of the stock in the market if there are increase in number of buyers then the stock prices increase when there are lot number of sellers then the stock price decrease
  • : postional trading refers to the buy of a stock in another day and the sell of the shares in another day whereas in intraday trading the buy and sell of a share in the same day
  • : traders can sell a share even they dosent hold it .but the trader have to buy the shares before the market closes or otherwise the broker will buy a share on behalf of trader and trader have to pay the money to broker with the penalty to the broker.
  • : trade plan is the plan where one who decides the entry level target and stoploss before executing any trade .because trade plan is the one which reduces the risk and loss of a trader .
  • : the stock price doesnt affect the monetary value of a company because the company raise its required money during its ipo in primary market. and the sahre trading is purely between the peoples in the secondary market which is known as exchanges and the price in this market doesnt reflect the aspect of the company.
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