Stock trading is the base of the whole subject. It also tells why its important to have a trade plan.

  • : In order to place an order buy or sell, a broker is mandatory. POA is given to broker to trade on the behalf of client only when the client has instructed to do so. To buy stock an exchange is required. Currently there are 2 main exchanges in India: NSE & BSE where most of the trading happens. Exchange is obligated to complete the order which has been executed by the broker then at the time of delivery, shares are stored by Depositeres. Currently there are 2 depositeries in India: NSDL & CDSL
  • : In FNO Segment: Margin is compulsory as it acts as a caution deposit in case of any counter party risk. Spot Market: If some one shorted a stock and didn't cover it and does not have the shares in DEMAT by the end of the day then it will first pose a fine on the trader and will go for an auction to arrange the shares.
  • : For wealth creation.
  • : Yes it is only if shares are available in the demat account.
  • : You will stand last in the que and wait for the market price to match your order.
  • : The order needs to be placed using DEMAT account with the details of the share price, quantity and buy or sell order. This will be routed to exchange through broker. The order can be a Limit Order(Executed when the meets the mentioned price), Market Order( Executed at the market Price) and Stop Loss Order(Executed when reached the mentioned threshold value) The order will be valid until 3.30PM of the trading day and all the remaining orders will get cancelled after that.
  • : Long: Buy the stocks first and then sell it later. Short: Sell the stocks first(Without having stocks in Account) and then buy them later, before the final settlement. Long Unwinding: Close out Position of Long, i.e Selling the stocks to exit the long position. Short Covering: Close out Position of Short, i.e Buying back the stocks to exit the short position.
  • : It is business until we follow risk to reward ratio. No risk management leads to gambling
  • : Buyers & Sellers
  • : Positional Trading : If a stock is bought and hold for a week or few weeks and then sold to realize profit/loss. Intraday Trading : If a stock is bought and sold within the same day that is between 9.15 am to 3.30 am.
  • : If a traders expect a fall in the price then he will short the stock and make profit out of it otherwise lose.
  • : Trade plan: When to enter and when to exit. How much is the price and volume defines the technical analysis part of a trade plan wherein we read charts as well to understand the trend of a stock.
  • : It will just affect the market capitalization of the particular stock. It wont affect its day to day operations.
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