Trading is a business for short term gains and this business is run by understanding the market trend, spotting the stock that sticks with the trend and traded with good volume to perform the trade. The trade should be taken by understanding the risk and reward and also it should be done with discipline. The difference between the income and expense incurred out of trade will tell us whether it is good trade or not. Good trade will yield profit to the trader and the bad trade will yield loss to the trader. In most cases, loss in trades are the outcome of gambling.

  • : When client wants to buy or sell shares, he can place the order - given quantity and price of each share, the order will be sent to broker, broker in turn forward the request to exchange where the order is placed in corresponding counter's queue and trade is executed if the deal is attained between the buyer and seller. SEBI will monitor the activities of the exchange, broker and its client. If any there's any complaint, SEBI will intervene and resolve the problem. Bank will take care of IPO and DEMAT account will be linked to your bank account. Whenever you buy shares, the cost of the share will be taken from the bank account and the shares will be deposited in the DEMAT account. Similarly, when the shares are sold.. the money obtained out of selling will be deposited in the trader account and the shares will be taken out of DEMAT account and it is transferred to the buyer.
  • : They will get caution deposit from brokers. Similarly, brokers will get caution deposit from all their client. When the client is not honoring the trade deal, then the caution deposit will get used up.
  • : People choose stock trading for short term return. Basically, they will analyse the demand and supply, risk and reward ratio. If the reward is greater than the risk, then they will trade and try to make profit.
  • : It is not possible in intraday. If we buy share in one exchange and sell the share in other exchange, it means that we are doing short in the later one. In which case, we are trying to sell the share which you didn't own(as the shares/buy trade deal are not with the exchange or demat account). In the case of delivery, the share will be deposited into our DEMAT account. Then, we can sell those share in any of the exchange.
  • : Buyer quoting highest price and the seller quoting lowest price are allowed to make deal and the deal will be executed.
  • : Provide number of stocks you wanna buy and the price of each stock as input to the online platform provided by the broker and place the order. There are two types of order - limit and market price. Limit represents buy or sell stock when the price is below or above the given price. Validity can be session, or for a month
  • : Long is Buy share and expecting the share to move up to sell. Short is selling the share and expecting the price to fall to buy. Long unwinding is the selling the stocks we hold. Short covering is buying the same quantity of stocks which we sold earlier(via short)
  • : If trade is done by understanding the risk and reward ratio and with discipline, then it's business. Otherwise, its gambling
  • : Buyers and sellers decide the stock price
  • : Buy shares, shares will get deposited into the DEMAT account maintained by NSDL or CDSL, hold it for some period of time and sell which is called positional trading(ignored buy today and sell tomorrow scenario). Buying shares and selling on the same day or selling shares and buying them on the same day is called intraday trading.
  • : If the trader expects the share price to fall, then he can take short position which means sell the stocks and buy those stock at lower price. The difference between the selling price and cost price is the profit they made.
  • : Trade plan is understanding the trend of the market, identify the stock adheres with the trend with good volume, understand the risk and reward for the trade we are gonna make and act accordingly. If the reward is higher then risk, it will yield us profit. Trade plan help us to identify whether its worth to take the trade or not.
  • : Market capitalization of the company will be affected by the stock price as it is dependent on the market price of the stock. Apart from that, it wont have any impact. Once the company collected the capital via IPO and invested in business, shared holder cannot claim for the money they invested with the company. All they can do is, they can put vote against the company's decisions.
  • : short and missed to buy on the same day result?
  • : Short covering intraday miss consequences?
1 Comment
  1. Naresh 1 year ago

    Hi,
    In response to your question
    Your Query 1:: short and missed to buy on the same day result?
    If you don’t square off your intraday trades it will be automatically squared off by the brokers.

    Your Query 2:: Short covering intraday miss consequences?
    I don’t understand what you’re saying…

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