Trading basics, Positional vs intraday, share price, BSE,NSC

  • : During the trading, the trader place the buy/sell order using brokers online trading software. This requested will be passed to exchange through broker, after verifying the deposits in the account. The order will be placed in the queue based on the best buying/ Selling Price and executed when it meets the counter party. The trading will happen from 9 AM to 3.30PM and the settlement happens after the trading timeline. The settlement is expected to happen within T+2 days of time. Broker is responsible for placing trader’s order to the exchange after verifying the depts in account, Broker is responsible for any misplaced orders and the brokers’s deposit will be considered to handle the settlement of misplaced orders. Exchange is the place where trading happens. Exchange will communicate only to brokers for any clarifications related to orders. SEBI defines the rules and regulations for all stack holders in stock marketing and support
  • : All the traders are connected to exchange only through certified brokers. And it is brokers responsibility to check that the orders are placed with proper depts in traders’s account. Exchange will take from brokers deposit if any misplaced orders from their client, to solve the settlement with counter party.
  • : Stock trading is the place where people can multiply their money in short time, hence people choose stock trading. But if the trading is done without complete analysis and trading plan, the risk of losing money is higher than the reward. Hence it is up to the trader to consider the trading as Business or Gambling.
  • : It is possible to buy from BSE and sell in NSE provided the software provided by the broker has the option to trade in both markets. However it wont be feasible to execute the trade as there will be very minimal price variation in the stocks and considering the brokerage and other transaction charges we wont be making any profit out of it.
  • : Even if we quote higher price the exchange will consider that we are ready to pay up to the quoted price and gets the order executed at the current prevailing market price.
  • : we can place our orders with the help of brokers or online trading There are two types of orders buy order and sell order Validity is up to the buyer and sellers concern. they can decide to sell and buy the order
  • : If we buy a stock expecting the price of the share to go high then is said to be creating long position. On the contrary if we sell a stock expecting the price to go down it is called Short Position. Selling the stock that is already bought is long unwinding and Buying a stock that has been already sold is Short covering.
  • : If stock trading is done with proper knowledge and discipline then its is business. Also the risk undertaken is more than the reward, hence trading is a business.
  • : The stock price is decided by the buyers and sellers in the market, supply and demand plays the key role in determining the price of the stock.
  • : Positional Trading : If a stock is bought and hold for a week or few weeks and then sold to realize profit/loss. Intraday Trading : If a stock is bought and sold within the same trading day that is between 9.15 am to 3.30 am.
  • : If the trader forecast that the share price will fall and the market is bearish then he might want to sell the stock before they buy it at a lower rate than they sold then to make profits
  • : To execute any task successfully we need to have a plan, same goes good with stock market as well. To be a successful trader we need to have a good trading plan, before we enter the trade we need to calculate the risk reward ratio and trade only if we find the risk is lesser than the reward expected. All this decision can be taken if and only we have a proper trading plan. Also the trading plan makes to choose the right instrument that is to be used to trade at the given circumstances.
  • : A company's stock price reflects investor perception of its ability to earn and grow its profits in the future. If shareholders are happy, and the company is doing well, as reflected by its share price, the management would likely remain and receive increases in compensation.
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