Buying and selling in Stock Market
Buying and selling of shares isn’t almost research and identifying a stock in stock market. it’s also about actual execution of the trade. you want to execute the trade the simplest possible manner and once that’s completed then the follow up actions must be taken like monitoring the position, tallying the position together with your final contract note etc. you’ll buy either online or offline.
Process of buying and Selling Shares
Opening your trading and demat account
If you have already got a trading and demat account, then you’ll immediately go and begin buying the shares. In case, you are do not have a trading and demat account, you would like to open a trading and demat account. SEBI rule don’t permit you to trade in stock market without trading and demat account. you furthermore may got to map a checking account to the trading and demat account.
Placing an offline versus online order | Stock market
You can buy and sell shares either offline or online. you would like to make a decision which mode you’re easier with. If you favor to take a seat within the broker’s office or call up your broker and trade then offline is that the mode for you. If you’re easier with the laptop or the mobile then online is that the mode for you.
Deciding on the sort of order to be placed
There are differing types of orders and you would like to work out which order to put . during a trending market a order will work best whereas during a volatile market a limit order are going to be an honest choice. just in case you don’t want to be seen on the screen for too long then an instantaneous or Cancel (IOC) order can work best. the entire purpose of fine tuning your order placement is to make sure that you simply get rock bottom possible price once you are buying the stock and therefore the highest possible price once you are selling the stock.
Executing the order and monitoring it…
Once the order is placed, you would like to trace its status within the order book. The order book consists of your executed and pending orders. It also contains all of your orders placed as identified with a unique order number in stock market. Once the order is executed, it’s moved to the trade edition . The trade edition will offer you a thought of the worth at which the stock was purchased and therefore the average price.
