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Lakshmisudha R replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 9 months ago
Equity Market is a market where equity shares of listed companies are traded.
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Lakshmisudha R replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 9 months ago
Future contract is a contract where the deal is done but the execution of the deal will be in a future date.
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Lakshmisudha R replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years, 9 months ago
long/short/long unwinding/short covering are positional trading
long – buying the shares to sell after some time is long position
short – selling the shares when price of the share starts to fall, without holding them
long unwinding – selling the shares bought after some time and exiting the long position
short covering – buying the shares…[Read more]
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Lakshmisudha R replied to the topic How Stock trading take place? – Explain the role of broker/exchange/ SEBI/ Govt/ BANK? in the forum Basics of Stock Trading 8 years, 9 months ago
stock trading takes place with the help of brokers through online in stock exchange.
Individuals after analyzing about particular stock calls up the broker and gives instructions to buy or sell shares.
Role of broker – acts as a middlemen between the Individuals and exchange and facilitates the stock trading.
Role of exchange – Exchange…[Read more]
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Lakshmisudha R replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 8 years, 9 months ago
Analysing the risk and reward ratio is trade plan.
Trade plan is essential because it helps individual to trade with knowledge and discipline.
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Lakshmisudha R replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 8 years, 9 months ago
Order is placed with the help of broker.
types of order are – Buy order and Sell order
Validity of order – it depends upon the buyers and sellers availability in the stock market
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Lakshmisudha R replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 8 years, 9 months ago
Stock trading is gambling when any individual starts trading without any knowledge.
Stock trading is Business when any individual starts trading with knowledge and discipline.
When any individual does trading in stock rationally after analyzing, is termed as doing business in stock trading.
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Lakshmisudha R replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 8 years, 9 months ago
stock exchanges ensures the traders counter party risk through brokers.
Brokers gets the license to trade only after depositing specified amount to stock exchange.
When the trade is executed and during settlement if any of the party that is the buyer or seller fails to fulfill his promise then the stock exchange will settle the affected person…[Read more]
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Lakshmisudha R replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 8 years, 9 months ago
Time required to do trade depends upon the availability of buyers and sellers.
When the buyer and seller for a particular shares are ready with the quoted price then trade takes place immediately.
When there is waiting for either buyer or seller then the execution of trade may take until the buyer or seller is available (may be months or years).
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Lakshmisudha R replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 8 years, 9 months ago
Intraday trading – Buying and Selling of stocks in a day is intraday trading
Positional trading – Buying the shares for selling them after some time is positional trading
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Lakshmisudha R replied to the topic Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? in the forum Basics of Stock Trading 8 years, 9 months ago
It is possible to buy stocks from BSE and sell it on NSE provided the shares of the company traded is listed in both NSE and BSE, and the brokers are registered in NSE and BSE.
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Lakshmisudha R replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 8 years, 9 months ago
Since my price is higher than the current market price of the stock I will in the top of the buyers que and trade will be executed at that high price.
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Lakshmisudha R replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 8 years, 9 months ago
Analysis – Studying the previous price history of a particular stock and determining its price movement is Analysis
Trading – Buying or selling of a stock based on analysis is trading.
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Lakshmisudha R replied to the topic What is online trading? in the forum Basics of Stock Trading 8 years, 9 months ago
Any trade which takes place with the help of internet is online trading.
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Lakshmisudha R replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 8 years, 9 months ago
People choose stock trading for making quick money.
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Lakshmisudha R replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 8 years, 9 months ago
Buyers and sellers decides the stock price.
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Lakshmisudha R replied to the topic What is the role of SEBI? in the forum Basics of Stock Market 8 years, 9 months ago
SEBI – Securities Exchange Board of India
It regulates the trading in stock market
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Lakshmisudha R replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 8 years, 9 months ago
Investments is long term, buying the shares and keeping them for long term to yield profit
Trading is short term, buying and selling of shares on daily or weekly basis to yield profit
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Lakshmisudha R replied to the topic What are the other markets? in the forum Basics of Stock Market 8 years, 9 months ago
commodity market
currency market
futures and options
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Lakshmisudha R replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 8 years, 9 months ago
Futures and Options were first introduced by NSE. since public started trading much in derivatives NSE became popular then BSE.
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