Summary.
1. Exchanges are physical locations where transactions are carried out on a trading floor, but increasingly the stock exchanges are virtual, composed of networks of computers where trades are made and recorded electronically.
2.. One of the shortcomings of the clearing and settlement process of the Indian stock markets was the absence of a system to reduce counter-party risk. Managing this risk is an essential need of a safe and efficient market, which can be achieved through setting up of a Trade or Settlement Guarantee Fund.
3. To make money. Stocks can help shareholders gain a return on their investment in two ways: with capital gains from the stock’s price rise; and with dividends, which companies may distribute to shareholders depending on annual income.
4 .Share can be bought on BSE and can be sold in NSE.
The method is called Arbritage.
5.Even though you quote higher price than the current market price for the stock you buy, the stock exchange will consider the existing market price and execute the transaction.
6.When you submit an order to your broker, he either fills it from his company’s own inventory or routes the order through a computer trading network. A seller is matched with your order, and the trade is executed.
7.The most common are market orders, limit orders and stop orders.
8. Long is the buying of a security such as a stock, commodity or currency with the expectation that the asset will rise in value.
9.A short, is a directional trading or investment strategy where the investor sells shares of borrowed stock in the open market.
10. The underlying asset will be consider as Unwinding the Long Position when both Price & Open Interest Goes down
11. The underlying asset will be consider as Covering the Short Position when Price goes up & & Open Interest Goes down.
