Trading of shares in a stock exchange takes place through Registered Stockbrokers, Transfer Agents, etc. Investing in the share market gives you an opportunity to earn potentially higher returns on your investment. We invest money in share trading expecting to get profits. When something is done in investing and if it gives a profit, it obviously becomes a business. So, share trading is a business and not gambling. Stock prices are largely determined by the forces of demand and supply. Intraday trading refers to entering and exiting positions on the same day before the market closes. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later. To place an order we need to have a DEMAT account with the details on the share price, quantity, and buy-sell order.

  • : Trading of shares in a stock exchange takes place through Registered Stockbrokers, Transfer Agents, etc. Securities and Exchange Board of India (SEBI) is the regulator of stock markets in India and ensures that securities markets in India work in order. SEBI lays down regulatory frameworks were exchanges, companies, brokerages, and other participants have to abide by to protect investors’ interests. Stock exchanges are an avenue where investors trade in shares, bonds, and derivatives. A broker is an intermediary that executes buy and sell orders for investors in return for a fee or a commission.
  • : Traders are connected to exchange only through certified brokers and it is the brokers responsibility to check that the orders are placed with proper depts in the traders’ accounts. The exchange will take from brokers deposit if any misplaced orders from their client in order to solve the settlement with the counterparty.
  • : Investing in the share market gives you an opportunity to earn potentially higher returns on your investment. Thus, venturing here gives you a chance to compound your money in the long run and accumulate wealth for various life goals.
  • : It is possible to sell a share in National Stock Exchange that was bought in Bombay Stock Exchange. But the condition is we cannot sell shares in NSE if we have bought them on BSE in a single day. The time period taken by any exchange to credit our DEMAT account is two days. So as soon as my account is credited I have the choice to either sell the shares bought on NSE or BSE.
  • : The price that currently prevails at the exchange will only get executed even if the buyer quotes higher purchase price.
  • : The order needs to be placed using a DEMAT account with the details on the share price, quantity, and buy or sell order. Types of order are 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 3.30 PM of the trading day and all the remaining orders will get canceled after that.
  • : Long- It means people are taking positions assuming the price will go up. This is marked by an increase in open interest and an increased price Short- It means people are taking short positions, assuming the price will go down. This is usually characterized by an increase in open interest and a fall in price. Long unwinding- This shows Long positions are now getting exhausted and people are starting to book profits. Short covering- Short positions are getting decreased and people are booking profits and expecting a reversal. Usually, this is represented by an increase in price and a fall in open interest
  • : We invest money in share trading expecting to get profits. When something is done in investing and if it gives a profit, it obviously becomes a business. So, share trading is a business and not gambling.
  • : Stock prices are largely determined by the forces of demand and supply. Demand is the number of shares that people want to purchase while supply is the number of shares that people want to sell.
  • : Intraday trading refers to entering and exiting positions on the same day before the market closes. We are bound to close our position at the end of the trading day no matter it ends in profit or loss. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later.
  • : Usually if one thinks that the market is going to be bearish he will sell the stock first and then buy it later when the price goes down to earn profit. If you sell stocks and couldn’t square off on the same day, resulting you’d default to deliver the shares on the prescribed settlement day. This default is called “Short Delivery”. The exchange has to buy stocks that are short in delivery at whatever price offered by the fresh sellers. This may cause an extra payment to acquire the shares which subsequently has to be borne by the person who defaults in making the delivery.
  • : Having a plan is essential for achieving trading success. Knowing when to exit a trade is just as important as knowing when to enter the position. Stop-loss prices and profit targets should be added to the trading plan to identify specific exit points for each trade.
  • : The rise and fall of share price values affects a company's market capitalization and therefore its market value. The higher shares are priced, the more a company is worth in market value and vice versa. The higher the expected market performance, the higher the cost of equity capital will be. Zero-sum is a situation in game theory in which one person's gain is equivalent to another's loss, so the net change in wealth or benefit is zero. A zero-sum game may have as few as two players or as many as millions of participants.
1 Comment
  1. Naresh 4 months ago

    Hi,
    Good start… we really appreciate your efforts.

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