BAsics of stock trading

  • : when buyers and sellers price meet the trading is executed. The buyer places an order for a stock through broker to the exchange and buys the shares. The seller receives cash in the depositories for the shares sold. Broker can only buy or sell shares, the traders they use brokers to buy and sell. Exchange-the exchange allocates the shares to traders through broker and they are responsible for any trade. SEBI-Its regulatory that governs trading activities. Govt or bank is not involved in the trading .
  • : The stock exchange is responsible for allocating the shares to buyers and sellers and not the Broker.
  • : The stock trading is a place to make better profits comparing to mutual funds or any other instruments.
  • : yes it is possible to buy and sell the shares on different stock exchanges. But its not possible for intraday as the trading will be possible only if the sharer are credited to the demat account which takes two days hence its not possible for intraday.
  • : The high price quote prioritizes the buyer to receive the required shares this is usually done when large number of shares are required. Though the price quote is higher the buyer receives the share price is market price or prices quoted by seller in ascending order.
  • : A seller is matched with your order, and the trade is executed. You sell stock in much the same way that you buy stock. Market order, limit order and stop order. Day Order-1 day Ioc order-Immediate VTC-Till 45days
  • : Long-To buy shares when the price is expeceted to go high. Short-To buy shares when the price is expeceted to go low. long unwinding-To sell the shares kept for for while expecting the prices to go down. Short covering-To buy the shares kept for for while expecting the prices to go high.
  • : The trading is gambling as at any point of time there are equal chances of a share to go up or down. To increase the chances of making profit one needs to be rational and disciplined with the decision making.
  • : The stock prices are decided by the buyers and sellers based on demand and supply, when the buyer and seller prices meets the trade is executed.
  • : The difference is the tenure and the choice of stocks. On Intraday the fundamentals of the company background doesnt matter just that a certainity towards a share if the prices may go up, and the buy and sell is executed on the same day. On Positional trading the shares are hold for longer period of time till it reaches the expected range price.
  • : This is called short postions the traders sell and buy stock expecting the prices to go low, so they sell the shares at the current market price and buys them when price goes low. The order of the buy sell doesnt matter as long as the number of shares are tallied at the end of the day.
  • : A trading plan outlines how a trader will find and execute trades, including under what conditions they will buy and sell securities, how large of a position they will take, how they will manage positions while in them, what securities can be traded, and other rules for when to trade and when not to
  • : No share price doesnt affect as the company collects the required fund while selling the shares through ipo, the stock trading is an option for ipo buyers to sell and buy other stocks.
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