What Are Different Types Trading
There are different types of trading in stock market accourding to their time period , benifits and risk.Here are some basic Information about trading, their typesd some tips about trading. So you can take an overview and can decide which type is right for you trading. There are many types of trading, by one with you can do trading and can make good money easily.
Different Types Of Trading
• Intraday Trading.
• Delivery Trading
• Short Sell Trading
• BTST/STBT Trading
What Is Intraday Trading
An intraday trading means you can do trading only for a day,so it is called intraday trading.Intraday is a type of trading in the market in which you can buy no. of more quantity shares in less amount by using additional margin which has given by your broker to you for trading.
Intraday is done to make fast money everyday to get the benifits price movement for some period like in the morning ,in middle time or at the end of market. In intrayday you can earn profit in one day may be in some hours or in minutes.
In this type of trading you can buy shares only for a day. This means that if you buy shares in morning then you must sell it before closing the market, otherwise your broker will sell it.
Benifits Intraday Trading
• In day trading you will get some additional margin.
• You can earn more profit in hours or some times in few minutes.
• You don't need whole amount for buying all quantity of shares like delivery.
• You can trade no. of times in day.
Even if you will have loss in a trading session then you can recover it in next session.
In Inintraday brokerage charges are less than delivery.
What Is Delivery Trading
This is also type of trading and also called as positional trading but not only for one day like intraday. In delivery you can sell shares at any time (at same day or next day or after one month or after one year/five year) does not need to sell at same day because shares are delivered in your account and you are hold it so.either all long term investments are done in delivery trading.
Delivery trading is done to earn more profit in once over some time period.
In delivery trading the brokerage is more than intraday trading. Also in delivery you don't get an additional margin from your broker. You have to keep the whole amount of all quantity shares in your account for buying shares.
For Example :
If you want buy 100 shares at 10rs then you need to keep 100*10=1000 + brokerage charges in account.
Delivery Trading Benefits
• Delivery is safe than intraday trading because after buying if you are in loss then you can hold shares for some time and then you can sell it in profit this is biggest advantage of delivery trading.
• Risk is less in delivery than intraday.
• You can hold shares if you don't get profit in a day and can exit next day. In intraday you cant
• Also you can earn profit in less days in delivery with some risk. (by trading in nifty50 shares)
• you don't need to worry about it because selling is in your hand.
• some times holding a company for some days is best because you get good profit in minimum days with no risk.
Short Sell Trading
This is type of intraday trading but in this type trader sell the share first and then buy it and make the money.
This short selling is benificial when there is down side movement in price at any time in a day. in every high volume share price there is always down side movement so you just need to juge it well. this need experience technical analysis.
For new ones this is very risky so dont trade in it at start.
BTST/STBT Trading
The BTST means Buy Today and Sell Tommorow and STBT means Sell Toady Buy Tommorow In this type of trading trader can buy buy share today and sell it on next day likewise he can do apposite of it he can sell today and buy it next day. This is not intraday trading or delivery trading. In this you dont need to hold the shares in your account just need to keep it one day to gain extra movement in price at same day or next day and make money.
• In this you dont need to pay Depository charges like delivery so this is biggest advantage of This type.
• either you dont get movement in trading day so yiu can wait upto next day but you cant in intraday.
• Not all the share are avaible for BTST/STBT trading so make sure before any trade.
Comments