What Is Trading

By Abhishek katkar
What Is Trading In Share Market

Trading means or Is process of buying and selling ( securities ) shares frequently of any company listed on stock exchange to make profit from it.

What Needs To Do/Start Trading

  • Investing account (trading+de-mat)
  • Small Capital(100rs)
  • Basic knowledge of buying and selling

Where You Can Trade In Market

  • In Equity (Stocks)
  • In Derivatives
  • In Commodities
  • In Currencies
  • In Cryptocurrency

What Happens In Trading

In trading you buy and sell shares of company which is good for trading, to make small or large profits from it.You can do this multiple times as per your amount and trading rules. so this frequent buying and selling is considered as trading and who do this called trader.

Example Explained :
 You have 5000 rs and you buy ABC company shares at 500 rs .when you sell it at 520 rs then it means you did trading in ABC company and earn profit of 20 rs and but after deducting all brokerage and charges remaining amount in your profit called trading profit. So you can do this multiple times in one or many companies at same time.

In Equity you can buy shares of company like from 1 to many depends on you and your amount but in others types you need to buy in lot size means multiple quantity of shares at once, means one lot. e.g: 1 lot = 50 shares. so your minimum buying is 50 shares or one lot to tarde.

Things About Trading:

• Any body can start trading in stock market after opening investing account from first day but that doesn't means you will start to earn from first day.

• Trading profit and results are much depends upon your trading type , investing amount, knowledge and experience. Like advantages there are several disadvantage of it. So be aware of this.

• There is lost of difference in trading and investing money in share market so don't be confuse with it.



Related Posts:

Types of Trading
How to do trading properly from begin
How to keep right approach about trading

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