The traders can transact their trades only through certified brokers. The brokers act as the bridge between the traders and the Stock Exchanges.

Stock Exchange facilitates the transaction between the Company and the traders through certified brokers.
SEBI monitors and regulates the stock market and protects the interest of the investors by enforcing certain rules and regulations.
The stocks are traded through the brokers and are settled by the Stock Exchange.
An investor is required to open a bank account to make financial transactions.
There are two types of trading, Positional trading and intraday trading.
Position trading is where the stocks are bought to hold for a long period of time.
Intraday trading is where the stocks are bought and sold and vice-versa, the same day.
Long: If you place buy order and then sell, it is called long. Selling the stock that is already bought is called long unwinding.
Short: If you place sell order and then buy, it is called short. This is possible only in intraday. Buying the stock that is already sold is called Short Covering.
There are two types of trends – Bullish and Bearish. Bullish is when the stock price opens low and moves up. Bearish is when the stock price opens high and closes low.
Demand and supply of stock influences the company. The investor demand and supply plays a vital role in the market and it will impact the fundamentals of the Company.

  • : The Broker facilitates the buying and selling of stocks at the Stock Markets for the investors. Demat Account is opened through the broker. Stock Exchange facilitates the transaction between the Company and the traders through certified brokers. SEBI monitors and regulates the stock market and protects the interest of the investors by enforcing certain rules and regulations. The stocks are traded through the brokers and are settled by the Stock Exchange. An investor is required to open a bank account to make financial transactions.
  • : The traders can transact their trades only through certified brokers. The brokers act as the bridge between the traders and the Stock Exchanges. It is the responsibility of the brokers to solve any discrepancies.
  • : People choose stock trading due to their passion for trading. The capital involved may be decided by the person himself. One can start stock trading with basic knowledge and analytical skill. He/she will be his own boss. One can trade from anywhere and particular location is not required.
  • : It is possible to buy stock in one exchange and sell it in another exchange and vice-versa. We need the credit of shares in our demat account. Intraday trading in two exchanges is not possible.
  • : If high price is quoted to buy a stock than the prevailing market price, the order will not materialise; i.e. the buy order will not get completed.
  • : There are two types of orders : (1) Market order and (2) Limit Order In Market order one can execute the price at the current market price. In Limit order one can decide and execute the price close to the prevailing market price. Order validity is the period for which the placed order is valid.
  • : Long: If you place buy order and then sell, it is called long. Selling the stock that is already bought is called long unwinding. Short: If you place sell order and then buy, it is called short. This is possible only in intraday. Buying the stock that is already sold is called Short Covering.
  • : Capital money is required to do stock trading and while trading, we do it with the aim to make profit, after due analysis. Any business is carried out to make profit. Hence stock trading is business and not gambling.
  • : Stock prices are determined by the demand and supply of shares. Demand is the amount of shares that people want to purchase while supply is the amount of shares that people want to sell. The stock price is the particular price level where both the buyer and seller agree to trade.
  • : Position trading is where the stocks are bought to hold for a long period of time. Intraday trading is where the stocks are bought and sold and vice-versa, the same day.
  • : In intraday trading, it is possible to sell a stock and later buy the stock. This is possible when the market is bearish, i.e. when the stock prices opens at a higher rate and starts declining.
  • : A Trading Plan is a systematic method for identifying and trading securities keeping in mind the risk and reward ratio. It includes when to make entry, stock price, stop loss and exit. Eg. Stock Price - Rs.100/- Buy: Rs.100/-, Stop Loss- Rs.95/- Risk - Rs.5/- Target- Rs.110/-.
  • : Demand and supply of stock influences the company. If the demand for the company is more, investors want to buy shares. As a result the stock price increases. If the company is not performing well, the investors want to sell their shares, thereby increasing the supply. The increase in supply leads the sellers to lower the stock price to attract the buyers to buy the stocks. The investor demand and supply plays a vital role in the market and it will impact the fundamentals of the Company.
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