The stock trading can be done within a day, the Positional traders can buy and then sell the stock at anytime. The Intraday trading allow the traders to trade without owing the shares, the stock is very important for the country’s economical growth and it’s help many small and big companies growth and the employment.
Via stock market, the businesses can get the funds without much difficulties, even the international investors can do a trading in the stock market via online.

  • : Broker is a mediator in between the trader and Exchange, who will take care of the responsibility to send and receive money for each trading. When the company enter into the IPO, after SEBI's approval, they can list under any exchanges. SEBI is a regulatory who will approve and regulates the companies who came into IPO and mange the Exchanges, brokers and complaints. SEBI is running under Govt of India, Govt will help SEBI & Exchanges to verify the traders and Exchanges. Banks are helping for the transactions in between the Bank account and Demat account, when the trader wants to trade, they can add money from their bank account, when they want to withdrawal the money, the money will be credited to their bank account.
  • : All traders are connect to the Exchanges via brokers, during the trading, the brokers will hold some money, if the client placed any order and it's not completed, then the Exchange will take care of the responsibility to give a settlement to the actual party by using brokers. Both the Exchange and brokers are responsible for the settlement on time.
  • : Stock market is the place where the people can trade the stocks anywhere in the world and it's important for the country's economical growth. Here people can buy a business's share and do a trading online, also if we do trading in a well analysis and plan, we can get a ROI more than 3 times of bank interest.
  • : Yes, but this is not possible in Intraday and this trading will not be completed within a day. If you bought a share in BSE, the share settlement to your account will take upto 2 days, once that share credited to your account, then you can sell that via BSE or NSE.
  • : Even if you bid as a higher price then the current market price, the best sellers will listed on the queue, the exchange will check what is the least price available to purchase and execute your order that the available least price.
  • : A client need a Demat account from anyone of the broker, which will be connect to your bank account via the trading account. Then you can choose the company shares which you want to buy/sell, if you want to buy, you will enter your bid price and place an order and if you want to sell, you will enter the Ask price an place an order, once both price's are matched, that order will be executed. Long, Short orders are using for Intraday trading, on Intraday, I can sell the shares without owing and buy back within end of the day on vice versa, I will buy and sell on a same day, this is call it as Intraday trading. For the Positional trading and long term trading, the client should need to buy first and then sell anytime, there is no validity.
  • : Long (buy) & Short (sell) is a Intraday trading strategy, if you put a Long position, you can buy a shares and sell, on the Short position, you can sell the share and then buy back, both Short & Long should be completed within that day. If you already have a shares, you will sell and exit the position call it as long unwinding, if you already sold the share, to buy back and cover the position call it as short covering.
  • : Before you start trading in the stock market, you need to calculate the Risk & Reward, the risk should be lesser than the reward, then it's a perfect business, without analysis and Risk & Reward calculation, if you do a trading, then it's a gambling.
  • : When the company entering into the IPO, the management members will decide the initial price, then when it starts trading, based on the Demand & Supply, the buyers & sellers will decide the current stock price. The very last traded price is the current price of that stock.
  • : In the Positional trading, you should need to buy the stock before you sell and there is no validity for the trading. The Intraday trading will be done within that day, here the traders can sell the shares without owing and buy back within the trading hours.
  • : The stock settlement will be happen after the trading hours and the settlement will be completed within 2 days, so while you do the Intraday trading, the traders are allow to put a Short position without owing the shares and buy back within the trading hours. In case the trader didn't buy back the sold shares, on the next day, the Exchange will come to the Auction market, buy that particular share on behalf of that trader and do the settlement to the actual buyer. For this uncompleted trading, the exchange will charge the penalty of upto 20% from that seller.
  • : The beginner will spend only 20% of his corpse, in case if you do the trade with your 100% corpse, there is a lot of change for you to exist doing the trade in the stock market when you find a big loss. The beginners when you place an order, you can setup a 2% stoploss also the same as a target.
  • : The stock price is important to estimate the companies current value, but that will not affect the monetary aspects of the company. If the stock price is keep increasing, then the company can start expanding their business without any hesitation. In case if they want more funds for the expansion, they can approach the existing stock holders to raise additional capital, if they agreed to provide during the investor meeting, otherwise they can split the number of stocks and Face value and allow more number of traders to be a part of their business.
1 Comment
  1. Naresh 1 year ago

    Hi,
    Thanks for Crystal Clear Explanation.

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