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Learn How to Trading in Share Market

The how-to of trading in the share market

If you’re trying to understand the how to do trading in the share market , becoming aware of how things work is the best way. India has two main exchanges where you can trade, the NSE and the BSE. Companies list their shares through an IPO. Thereafter, these shares are applicable for being bought and sold. Let’s take a look at the details of the stock market and learn how to do trading in the share market in India.

Regulatory bodies
The Indian stock market is regulated by the Securities and Exchange Board of India (SEBI). SEBI is the only governing body ruled by the SEBI Act 1992, and it seeks to ensure fair trading. SEBI is also responsible for implementing rules under the Securities Contract (Regulation) Act, 1956. Thus, when you're trading all your trades are governed by these regulations.

Types of Share markets
Moving on from the regulation, the types of share markets are essential for you to know. The answer to how to do trading in the share market starts with the two types of markets available: the primary and secondary markets. Primary markets are wheel companies that issue stocks to raise money. This is the process of listing. The secondary share market is where existing market shares are bought and sold.

How does it all work?
In the case of the primary stock market, companies list their shares through an IPO. If you're wondering how to do trading in the share market, an essential task is placing bids. You have to place bids for stocks and if they get accepted the stock is under your ownership. There is no guarantee that you will get a company’s stock. Once you bid and that bid is accepted, only then can you hold stocks of a company.

Alternatively, in the secondary stock market, investors buy and sell from each other through a broker. An elementary trading fact in the share market, for the secondary one, is that you have to negotiate prices to get stocks accordingly.

Passing the order?
An important fact about how to do trading in the share market is the passing of your order through your broker to the exchange. Once this is completed, the seller also passes a sell order. If your buy order matches the sell order, then you can acquire the stock. We recommend going for an online trading platform as they do not interfere in your trading process, unlike traditional brokers.

Settlement
Once the prices of the buyer and seller are matched, the exchange will confirm the details to ensure that there is no transaction default. The exchange then transfers the ownership of the shares to the buyer from the seller. This is called a settlement.

The basic of how to do trading in the share market is the ones we have mentioned. However, there's more to it than that. There are different strategies to investing, fund sizes, company profiles that you need to look at. If you're looking for how to do trading in the share market, we recommend joining an online platform like Ski. It provides you with a dashboard full of all the necessary information and real-time updates of the markets. This helps you a long way when it comes to trading! You can check them out here.