The stock exchanges are regulated by SEBI by an Act of Parliament. The stock exchanges facilitates buying and selling of shares of listed companies.
The Exchange ensures counter party risk with suitable mechanism.
Trading makes easy for a trader because the fund involvement is less than for Investing requirement.
We can buy shares from one exchange and sell in other exchange provided, we have to wait till the shares are delivered in to the Demat account.
There are many product types such as Delivery, Intra Day, Market order and stop loss order.
The long position means, ” BUY” and short position means, “SELL”
We have to undertake Trading as Business rather than Gambling.
Always undertake Trade with Knowledge and proper plan.
If trading is undertaken with out knowledge and plan, it is Gambling only, even though you earned money.
The stock price is decided by traders only.
For positional trader, he can hold the position till he wishes to hold.
For Intra day trader, he has to square off his position before 3.30 PM of the same day of trade. If not, that will end up in Auction process.
A trader can take a short position and take long position. If the short price is less than the long price, he will get his profits.
If the short price is more than the long price , he will incur a loss.
For setting up a trade, a plan is necessary. According to the plan, you have to enter the trade with target and stop loss.
Two percent of the capital may be used for trade.
The monetary aspects of the company will have a say over the share price of the company.

1 Comment
  1. Suresh Surulimuthu 1 year ago

    Good analysis !

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