*Stock trading take place in exchange where buy/sell orders are placed via brokers.
*Broker is an intermediary between trader and exchange.It is responsible for excuetion of trade.
*Exchange is a platform where buyers and sellers meet.when your order matches to counterparts price, then order is executed.
*SEBI monitors activities of exchange.
*Government doesn’t directly involve in stock market and set roles for SEBI and make sure that SEBI can handle the issues.
*Bank account is required for transactions to happen between trader account to others.* In Stock trading we get high returns in short span of time compare to other investments.
*More over it is easily accessible and can be used as secondary income.*We can place an order using software portal provided by broker(DEMAT account).
*Types of orders-*Buy order
*Sell order.
*Order is valid till end of the day i.e 3:30 pm closing time of stock market.
*When we expect share price to go up we create long position.
*In long position first we buy shares and sell it later.
*when we expect price to go down we create short position.
*In short position first we sell shares and buy it later.
*Long unwinding-selling the shares bought to exit long position.
*Short covering-Buying the shares which are already sold to exit short position.
* In Positional trading, the shares are hold for longer period(week/month/year).
*Intraday trading refers to buying and selling shares within same trading day(9:15-3:30)
*Trade plan defines*selection of stock
*which stock to be bought & sold.
*calculation of risk and reward.
*stop loss(when to exit).
*It is essential to be a knowledge and discipline trader.

  • : *Stock trading take place in exchange where buy/sell orders are placed via brokers. *Broker is an intermediary between trader and exchange.It is responsible for excuetion of trade. *Exchange is a platform where buyers and sellers meet.when your order matches to counterparts price, then order is executed. *SEBI monitors activities of exchange. *Government doesn't directly involve in stock market and set roles for SEBI and make sure that SEBI can handle the issues. *Bank account is required for transactions to happen between trader account to others.
  • : *Stock exchange ensure traders counter party risk through brokers. *Brokers are intermediary between trader and exchange. *Brokers should deposit amount to get licensed. so incase of delay in delivery ,if either buyer/seller fails to fulfil promise then exchange utilises the deposit of broker to counter party. Later broker should do settlement with trader.
  • : * In Stock trading we get high returns in short span of time compare to other investments. *More over it is easily accessible and can be used as secondary income.
  • : *Its possible to buy stocks from BSE and sell it on NSE. *Limitation-*Brokers should register with both the exchanges(NSE,BSE). *The company stocks should be listed in both exchanges.But it is not possible for intraday trading because of time delay.
  • : *Buyers quoted with high price have first preference.so ,I will be first in queue and my order will be immediately executed by exchange with best price available.
  • : *We can place an order using software portal provided by broker(DEMAT account). *Types of orders-*Buy order *Sell order. *Order is valid till end of the day i.e 3:30 pm closing time of stock market.
  • : *When we expect share price to go up we create long position. *In long position first we buy shares and sell it later. *when we expect price to go down we create short position. *In short position first we sell shares and buy it later. *Long unwinding-selling the shares bought to exit long position. *Short covering-Buying the shares which are already sold to exit short position.
  • : *Stock trading can be considered as business as well as gambling. *It depends on participant view. *If risk is lesser than reward ,then it termed as business. *If risk is greater than reward, then it is termed as gambling.
  • : *Buyers & sellers decide the stock price, who are executing trades in market. *share price fluctuates depending on demand and supply .
  • : * In Positional trading, the shares are hold for longer period(week/month/year). *Intraday trading refers to buying and selling shares within same trading day(9:15-3:30)
  • : *It is termed as short selling. *Example-you can sell a stock without owning it, say if you sell a stock around 11 in morning, by evening you have to purchase the same stock.suppose you sell a stock cost of 100 in morning and purchased same stock at 80 in evening, then you made profit of 20 rupee per share. *It is applicable for intraday and derivate trades
  • : *Trade plan defines*selection of stock *which stock to be bought & sold. *calculation of risk and reward. *stop loss(when to exit). *It is essential to be a knowledge and discipline trader.
  • : *Zero sum game is game concept where profit and loss of participants are equally balanced. *Rise and falls in the share price won't affect overall business directly.However, fall in share price ,stop the firm from buying more shares.
1 Comment
  1. Naresh 3 years ago

    Hi,
    Keep up the great work!

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