Stocks are traded at exchanges. For a stock trade to happen, for every buyer, there should be a seller. Both the buyer and seller place their orders stating the company, number of shares and the price at which they want to buy or sell. These orders are sent to the exchange by their brokers and the exchange match these orders and strike a deal. Once the trade is made, stocks are transferred to the demat account of the buyer and money transferred to the account of the seller. This process is called as settlement.
A trade can be an intra day or positional trade. If all the positions are squared off the same day, it is called as intra day and if position is carried overnight, it is called as positional trade.
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