Learn Basics of Share Market Indian Stock

Learn Basics of Share Market Indian Stock

Learn Share Trading and Processes

Share Trading -
Buying and Selling of shares is called share trading.
Mainly there are two ways of doing share trading.
¨ Online Share Trading.
¨ Offline Share Trading.
¨ Online Share Trading -
Doing share trading with help of computer, internet connection and with trading/demat account is called Online
Share Trading.
If you would like to do online share trading then you should have a computer, internet connection and online trading
account.
Details of Online share trading has been given in next chapter.
¨ Offline Share Trading -
Doing share trading with the help of broker or through phone is called Offline trading.
In other words trading will be done by another person on your behalf based on the instructions given by you, and
then the other person can be a broker.The broker will do buying and selling of shares on your behalf depending on
the instructions given by you.
If you want to do offline share trading then you need to open the demat account. (provide link for procedure to open
the demat account)
Details of Offline share trading has been given in next chapter.


Different methods of buying and selling of shares
Following are the types of orders which are used for buying and selling of shares.
¨ Market Order -
When you put buy or sell price at market rate then the price get executes at the current rate of market. The market
order get immediately executed at the current available price. In market order there is no need to mention the price; the
shares will get executed at the best current available price. If you wish to buy or sell shares at any specific price then
market order is not suitable for you then you have to go for limit order. Market order is for those who want to buy or sell
immediately at the current available price.
¨ Limit Order -
It’s totally different to market order. In limit order the buying or selling price has to be mentioned and when the share
price comes to that price then your order will get executed with the mentioned price by you. But here it’s not sure that
the price will come to your limit order. In day trading its risk because you have to close all your transactions before
3:30 PM and if in case price doesn’t reach to your limit order then your order will be open and then you have to go
through (bare) the heavy penalties.
Importantly limit order and stop loss trigger price are used together.
¨ Stop Loss Trigger Price-
Stop loss and trigger price are used to reduce the losses. This is very important term especially if you are doing day
trading (intraday).Stop Loss as the name indicates this is used to reduce the loss.