Trading takes place by trader by putting Buy or Sell order through brocker through trading software
Brocker is responsible for order placing and if trader fails to pays margin to another trader the brockers are responsible for that.
Exchange is where tading is take place
SEBI acts as regulatory department and it solves the problems between the traders
To place order the trader should have trading software.
types of order
normal order
bracket order
limit order
cover order
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Hi,
This will be the appropriate answer for the question -How stock exchanges ensure the trader’s counterparty risk?
The buyer/sellers are connected to exchange via the broker. The stock exchange collects a deposit from the broker to issue the license. While placing the order the broker checks the required funds in the buyer’s account. If a buyer does not have enough money, during the settlement the exchange takes from the broker’s deposit to settle the trade.