The role of exchange and how to trade when the price is high and low. Also when to place an order and what type of order to go for

  • : Brokers help us with buying and selling our shares and storing it in digitalized format SEBI helps in governing the exchange with its rules and regulations Exchanges are place where we find all sectors of the company and can also find the demand and supply Government policies can turn the table for investors and companies. Their policies can lift up the shares. The government also protects the investors in getting fair play.
  • : Exchanges are run by certified brokers. When the client fails to pay the counter party the exchange ensures the broker pays the counter party with its own money
  • : It profits both the buyers and sellers . Also the risk encountered here is known to both the parties. When risk are lower than returns high profits are encountered so people choosing stock trading gain profits
  • : Yes it is possible to buy stocks from NSE and sell in BSE but it cannot be done in intraday as the shares get credited after 2 days
  • : When I order high price is placed I go down and have to wait in the queue until my price is reaches the first line of the queue
  • : Market order is placed when the shares reaches the best market price and is executed only when the limit is reached Stop loss order is placed for a limit for the purchased price or below the share price in order to incur the loss
  • : Long is taken when we are sure about the price going up for a stock and hold it until prices don't drop Short is done for stocks when we see a drop in price. This further decreases our loss
  • : Stock trading is business when you understand the risk you take for the returns. Or when the returns are higher than the risk taken
  • : Basically the price of stocks are dependent on the demand and supply in the share market. Buyers and Sellers quote their price accordingly
  • : Intraday is something that is done within a day. You buy or sell shares on the same day with 1% return But in positional trading we understand the shares position and then take long or short accordingly. This is usually done when one expects high returns.
  • : In trading settlement is done only after market hours. So when we sell stock before we buy there are chances to purchase it within market hours and settle it. The exchange will look into our account only when we after market hours. If we did not settle it within market hours exchange will get stocks from other seller and settle it to the buyer at our expense.
  • : Entry level is the price above which we can confidently go for long and Stop loss is the level below which the price gone one should call for short and target is the best possible projected price for a share
  • : High share price increases the company's market capitalization and also increases the market value thereby inviting more investors.
  • : About Long unwinding and Short covering
  • : Is a company dependent on its share price?
1 Comment
  1. Naresh 5 months ago

    Hi,
    In response to your question

    Your Question 1:: what is long unwinding and short covering
    Long unwinding is a situation in which traders starts selling the security which means they have started booking profit by squaring off their open long position in the market. If long positions are sold off, the price will decrease and open interest will also decrease
    Short covering is closing out a short position by buying back shares that were initially borrowed to sell.

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