@ravi
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Ravi started the topic Trading Accounts and Exchange, in the forum Stock market questions and answers 7 years, 5 months ago
In case of day trading, a sell order needs to have a buy order before settlement. I believe it is based on client ID. Not at exchange perspective.
for example, a person can be client with broker A as well as with Broker B. He can not do the buy with one broker and sell with another broker.
Even though it is the same person, the exchange bound to…[Read more]
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Ravi replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 5 months ago
Order : The orders are placed through online system.
There are many types of orders.
People do often place buy order and sell order.
Request for buying a particular stock is buy order.
Request for selling a particular stock is sell order.
The order placed can hold different statuses.
If the order is completed, then the same is not a…[Read more]
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Ravi replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 5 months ago
Trading and Analysis
If you go to a grocery store, there may be person who assist the shop owner who sell the product or help the owner during his purchase. This kind of activity is Trading. It is all about, placing a buy or sell request with online system.
But the shop owner decides which products he want to sell or procure to run the shop.…[Read more]
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Ravi replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 5 months ago
Long, long unwinding, short, short covering are the terms used to refer the position.
long : If a trader buy a stock for the first time, then the position he holds in long.
long unwinding : If a trader sell the stock which he purchased, then the position he holds in long unwinding.
short: If a trader sell a stock for the first time, then th…[Read more]
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Ravi replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 5 months ago
Stock Trading is a business.
Stock Market. Name itself derived on the concept where business oriented people who apply their knowledge for the buy and sell. It is like any other market people use this as a trading place. Hence stock trading is a business.
If the people are not able to understand the basics of trading they bound to be part of gamb…[Read more]
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Ravi replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Objective of Business persons differ. If I venture in to a business say opening up a stationary shop, my objective is multi-fold. It is all about various strategies which will make my business success. This success in turn converted into profit.
Similarly, if you envisage stock trading is a place where your business success is more important by…[Read more]
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Ravi replied to the topic when does stock trading becomes gambling ? in the forum Stock market questions and answers 7 years, 5 months ago
Stocks become gambling if you do not know what is a Trade Plan. Over and above the application of knowledge and discipline in preparing the trade plan leads to success.
Therefore, if you start trading without proper business plan (trade plan) it is called gambling.
Similarly, if you fail miserably in your trade plan if you fail to apply the…[Read more]
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Ravi replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Trading in old day happened in physical location. After the online, web , mobile technologies blown up, the physical location specific trade is replaced with online trading.
The concept of traditional Trading is exchange and online trading has no difference in operation. The only difference is here, the risk is reduced drastically. Earlier,…[Read more]
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Ravi 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 7 years, 5 months ago
Trader can quote a price as per their analysis. If it happen to be the highest price, then the same is NOT LISTED in the queue. Even before the same is listed the price you quote automatically eligible for a deal. Hence, the probability of seeing such high price trade as part of Market Window is near zero.
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Ravi 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 7 years, 5 months ago
Trade can quote a price as per their analysis. If it happen to be the highest price, then the same is NOT LISTED in the queue. Even before the same is listed the price you quote automatically eligible for a deal. Hence, the probability of seeing such high price trade as part of Market Window is near zero.
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Ravi replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Positional Trading : It may be near future trade or long term trade. Purchased stocks can be sold after 2 days or even after months. People based on their Trade Plan, they envisage the price of the stock which they selected bound to trigger profit for them in the near future or after a period of few months.
Intraday Trading: Usually it is…[Read more]
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Ravi replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 5 months ago
Trade Plan is like any business plan. Ina business we analyze the pros and cons of a particular business and ensure whether the reward is greater than the risk if we venture into the business.
Similarly people do make a similar attempt on deciding which stock they need to trade.
The same is achieved through identifying the earning ability of a…[Read more]
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Ravi replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 5 months ago
There are two types of people who do participate in stock trading.
One is business oriented people with reward specific objectives.
The other set are primarily they test the water by means of gambling and take risky approach.
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Ravi started the topic Risk of Trading in the forum Stock market questions and answers 7 years, 5 months ago
In case if a client is not able to provide sufficient amount in his account, then the broker calls that client and request them to top up the account with the difference in money. Is it possible for broker, to provide over draft in exceptional cases. (Exceptional cases may be a corporate client, or a loyal client over a period of time).
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Ravi replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 5 months ago
The Stock exchanges directly interact with brokers. They never interact with Traders. Brokers are responsible for providing the caution deposit. The daily settlement which happens at exchange takes care of the same. If any broker, need to pay the money then they need to top up the difference on the same day.
In turn, the brokers ensures their…[Read more]
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Ravi replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 5 months ago
The Stock exchanges directly interact with brokers. They never interact with Traders. Brokers are responsible for providing the caution deposit. The daily settlement which happens at exchange takes care of the same. If any broker, need to pay the money then they need to top up the difference on the same day.
In turn, the brokers ensures their…[Read more]
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Ravi replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 5 months ago
It heavily depend on the knowledge as well as discipline one follow in trade.
If a person is very good in understanding how the trading happens, how he able to use the learned knowledge by adhering to the disciplined activities, a trade can be completed within a minute.
Else, the same is treated as gambling.
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Ravi replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 5 months ago
It heavily depend on the knowledge as well as discipline one follow in trade.
If a person is very good in understanding how the trading happens, how he able to use the learned knowledge by adhering to the disciplined activities, a trade can be completed within a minute.
Else, the same is treated as gambling.
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Ravi 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 7 years, 5 months ago
Yes it is possible to buy stock from BSE and sell it in NSE.
Similarly you can buy in NSE and sell it in BSE.
The limitation is the stock should be traded in both exchanges.
With respect to settlement it is bound to create challenges for intraday. Same day settlement across exchanges is not provided.
Even, next day trading might not be…[Read more]
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Ravi 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 7 years, 5 months ago
Yes it is possible to buy stock from BSE and sell it in NSE.
Similarly you can buy in NSE and sell it in BSE.
The limitation is the stock should be traded in both exchanges.
With respect to settlement it is bound to create challenges for intraday. Same day settlement across exchanges is not provided.
Even, next day trading might not be…[Read more]
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