Stock trading happens in Exchange where the buyers and sellers will meet. The buyers/sellers will order a buy/sell order in exchange via Broker. Trade should be done with calculated risk and return in order to make it as a Business
Manoj Kumar, , Basics of Stock Trading, broker, COUNTER PARTY RISK, long, long unwinding, Positional and Intraday trading, short, short covering, Stock trading, Trade plan
Hi,
Your Question 1 :: Role of Banks/ Government in stock market
Governments generally don’t like to take an active role in the securities market. However, there are methods and policies by which the government’s actions may have an indirect influence on the market. The Ministry of Finance (MoF), the Securities & Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are the three regulatory authorities governing Indian capital markets.
Your Question 2 :: Counter party risk
Counter party risks are ensured with the help of Stock Brokers who acts as an intermediate between Exchange Board and the Trader.