The main components of the stock trading is trader,broker,exchange,SE-BI,banks.
when trader want to place any order it can only done by broker.Behalf of the trader broker execute the orders and make the trades happen. Exchange is the thing which is responsible for Trade Settlements. SE-BI is trustworthy between company and public.Stock Trading is a business till the trader have the knowledge of risk vs reward otherwise it will be gambling.
Trader can create Long position if assume the price may go up and create short vice versa,there three types of trading Intraday, Positional, Optional. Based on the trader interest trading can be done.Trading also reflects the company performance due to the financial commitments.
- : Broker is a medium to execute the orders of clients, Exchange is responsible for all the trading settlements, SEBI role is like trustworthy between company and public, Bank is to manage the accounts
- : Basically stock exchange is responsible for trade settlement, So it will ensure the proper orders should be done to accomplish the settlements.
- : Stock trading is like a business,Base thing is money and also we can be a part of ownership of a company and share the profit or lose.
- : Yes,It is done based on the weather the trader is in both NSE and BSE and also the broker approval.It also charges around 20% of your Profit or lose.
- : It will be considered as first priority but it is done on top seller price.
- : Through the applications provided from the brokers we just have order buttons. There is Buy order and Sell order. Validity is till the closing of market if it is intraday but for other it is based on the order which we place like if it is optional it should be done till a particular day.
- : If we think the prices will go up then will buy it and create a long position if it is vice versa it will be short. If we close the long position it is long unwinding, same if we close short position it will be short covering.
- : It is a business if we have the knowledge on risk and reward otherwise it will become Gambling.
- : Buyers and Sellers
- : Positional trading is buy the shares and holding it till our interest, But intraday trading should be done with in the closing of the market.
- : Short position can be created even we don't own the object but during the trade settlement trader should have the object or there should be some proper exchange. Consequences are to pay the exchange before the settlement.
- : Trade plane is a way to evaluate the stocks having knowledge in risk vs reward, knowing how to create Long and Short orders.It is essential to know till when share can be hold means stop lose and vice versa target price.
- : Yes,It decides the value of the company based on that economy will change.