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Neha Narayanan replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 6 years, 10 months ago
An order for trading in stocks can be placed online through the online software portal provided by the broker using the DEMAT account.
There are 2 types of order- buy order and sell order
validity of order- until the trade is executed. -
Neha Narayanan 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 6 years, 10 months ago
The exchange looks at the price as ‘EVEN UPTO’ and that the buyer is willing to pay upto that much for buying the shares. Thus, the deal/order is executed at the prevailing market price.
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Neha Narayanan replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 6 years, 10 months ago
Stock trading is seen as a platform by investors to make and multiply money. Stock trading- both long term investments and trading is a good source of making money.
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Neha Narayanan replied to the topic Can I trade NIFTY, SENSEX ? in the forum Basics of Stock Trading 6 years, 10 months ago
NIFTY and SENSEX as shares cannot be traded but their index value can be traded in the futures market.
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Neha Narayanan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 6 years, 10 months ago
Trade plan is required by investors to decide which shares to buy/sell and calculate the level of stop loss after proper analysis of stocks in the market.
It is essential to properly calculate the risk reward ratio and make a profitable investment. -
Neha Narayanan replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 6 years, 10 months ago
Gambling / Business depends mainly on the risk-reward ratio. when RISK > REWARD, it is called gambling and when REWARD > RISK, its called business.
When any investor enters the market without knowledge and discipline, its called gambling. When an investor decided to trade after proper analysis of risk-reward ratio, it becomes a business. -
Neha Narayanan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 6 years, 10 months ago
Time for trading largely depends on the investor. For instance, intraday trade, trading is completed on the same day. An investor may decide to buy shares now and sell them after a few days. But however, the process of order placement for buying/selling shares is a matter of few minutes.
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Neha Narayanan replied to the topic What is online trading? in the forum Basics of Stock Trading 6 years, 10 months ago
Online trading refers to buying and selling of shares through an online network connected with your DEMAT account with the help of the brokers. Online trading has increased the efficiency of stock trading.
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Neha Narayanan replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 6 years, 10 months ago
Analysis is the prerequisite for trading. Analysis helps the traders to logically derive the movement in stock price and further trade. There are 2 types of analysis namely fundamental analysis and technical analysis.
Trading happens after analysis.
trading refers to actual buying and selling of shares. -
Neha Narayanan replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 6 years, 10 months ago
Brokers act as the intermediaries between exchange and traders.Exchange requires the broker to deposit some money with the exchange for providing broker’s license. If any trader defaults his transaction, then the exchange uses the broker’s money to settle the counter party and the broker has to recover this from his trader.
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Neha Narayanan replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 6 years, 10 months ago
When we expect the prices of shares to go up(increase)
create a LONG POSITION i.e; buy shares and when the prices increases, we sell the shares. This process of selling the shares is known as long unwindingWhen we expect the prices of shares to fall
create a SHORT postion i.e; sell first and buy later when the price falls.
Selling the stocks…[Read more] -
Neha Narayanan 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 6 years, 10 months ago
Stock trading take place when an order is executed between a buyer and seller.
Broker:Broker is the intermediary between the buyers& sellers and the exchange in a stock market and it is required by all traders to open a demat account with the broker.
Exchange:Exchange provides the platform to both buyers and sellers to buy and sell their…[Read more] -
Neha Narayanan replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 6 years, 10 months ago
Positional trading is a type of trading where the buyer buys shares and holds them for a short period (say a week or 10 days) and sells it at the end of period. On the other hand, Intraday trading refers to buying and selling of shares on the same day.
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Neha Narayanan replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 6 years, 10 months ago
The stock price is determined by the buyer and seller depending on demand and supply
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Neha Narayanan replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 6 years, 10 months ago
Investment refers to buying shares and holding them for a long period of time and selling them later.Whereas in trading, shares are bought and sold at regular and frequent intervals.
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Neha Narayanan replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 6 years, 10 months ago
NSE introduced futures and options trading which attracted more traders to its market which was introduced in BSE much later.
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Neha Narayanan replied to the topic What is IPO? What is the process of applying for IPO? in the forum Basics of Stock Market 6 years, 10 months ago
IPO refers to initial public offering where a company proposes to raise capital from the public through issue of shares or other instruments.
IPO comes under primary market.
process:
Fill the application form issued by the company which will be available with broker / online and pay the amount to the bank that is designated as the collecting…[Read more] -
Neha Narayanan replied to the topic What is SENSEX, NIFTY ? in the forum Basics of Stock Market 6 years, 10 months ago
SENSEX or sensitive index is an index used by Bombay stock exchange which records the average stock movement of top 30 companies listed in Bombay stock exchange. NIFTY is an index used by the National stock exchange which records average stock movement of top 50 companies listed there.
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Neha Narayanan replied to the topic What is DEMAT a/c? in the forum Basics of Stock Market 6 years, 10 months ago
DEMAT account is an account opened by an investor which stores all the shares/financial assets that the investor owns in a dematerialised or electronic form.
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Neha Narayanan replied to the topic Why do we need stock market? in the forum Basics of Stock Market 6 years, 10 months ago
Stock market is required to provide liquidity to the existing financial assets and to regulate and control all the transactions. It protects the interests of the investors as it is regulated by SEBI.
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