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Essentials of Trading – Stock Market Tutorial

Market Live brings in the Stock Market Tutorial which explains the essentials that you need to know before starting to trade. Whether it is about Placing Orders or about Buying / Selling online – Get all the trading jargons being explained in a simple manner here.

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Basics of Stock Trading

Where can I trade Stocks ?

Stocks are traded in the Stock Market or the Stock Exchange. In India, the two most popular exchanges are the Bombay Stock Exchange (BSE – Located in Mumbai) and the National Stock Exchange (NSE – Located in New Delhi).

Do I have to be physically present in the stock market to trade stocks ?

Not necessarily. You do not have to be physically present in the stock market to start trading. For trading in stocks, you can open an account with a Stock Broker, who is a registered member of the BSE or the NSE. Once you have opened the account, you can start trading in the stocks through your local Stock Broker. The Broker charges a fee called the Brokerage or Commission from you for every trade that you do in the stock market.

What is Online Trading ?

Online Trading is a fairly new and popular mechanism for trading Stocks, wherein the you can buy and sell the stocks over the Internet. With the flexibility that Online trading offers to the clients, this mechanism of trading has become hugely popular among the investors and traders in the recent times.

When you buy or sell stocks online, you will be interacting with an Online Stock Broker, in contrast to the Human Broker in the conventional trading system. The Online system places the orders on your behalf, gets them executed in the exchange and inform the order status to the clients. Like the older system of trading, a fee is charged as Brokerage or Commission for every trade executed using the Online system.

What other services are offered in Online Trading ?

Apart from providing a platform for trading stocks, many Online systems provide integrated packages that link your Trading account with your Bank Account.
This helps you to buy and sell stocks and get the money transferred to your Bank account in a hassle free manner.

Apart from this, many Online Systems also offer Stock Research and Tips from Market Analysts to the clients, over the Trading Platform. This will help you to choose and value your trade calls in the Stock Market.



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