Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
TRADING & SETTLEMENT PROCESS
#1

[attachment=14302]
SYNOPSIS OF TRADING & SETTLEMENT PROCESS
Stock exchange (also called stock market or share market) is one important constituent of capital market. It is an organized market for the purchase and sale of industrial and financial security. It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations. It performs various functions and offers useful services to investors and borrowing companies. It is an investment intermediary and facilitates economic and industrial development of a country.
Trading:
Trading members have network connected to the stock exchange can view the prices quoted by various sellers and buyers across the country. The same is displayed to the clients through the website (online update). Clients shall access the information through login ID and password can view the purchase and selling price, place an online order to buy or sell. This order is placed with the broker then the broker acts on the order and strikes a deal. Brokers shall deliver the shares and collect money.
Types of Trading
Trading is done on stock price for a day or for couple of days.
Trader is not worried about company performance; he is only worried to book profits whenever the share price rises.
Basically there are two types of trading methods
1. Day trading and
2. Swing trading.
1. Day trading
Buying and selling of shares on daily basis is called day trading.
Day trader don t carry stocks to next day, he square off the positions (shares) on same day.
Mainly there are two types of day traders.
i. Scalp trading
ii. Momentum trading

i) Scalp Trading
A scalp trader buys and sells shares at very low profits (margins) and does multiple trades on daily basis.
ii) Momentum Trading
A momentum trader identifies the trend and buys shares at bottom and sells at the high of the trend.
He may do one or two trades or at the most three trades in a day.
He may not do as multiple trades as scalp trader on daily basis.
2. Swing Trader
A swing trader is just like a day trader but swing trade may hold the shares (positions) for couple of days like 4 to 5 days, while day trader doesn t hold shares even for next day.
Swing trader basically trades based on news, breakout and breakdown in technical charts, based on volume surge, based on up and down trade etc.
Clearing:
Trading members are given time to know their positions as to whether they should get shares or to deliver the shares. The Trading member may pay and take delivery or may deliver the shares and collect money. The whole process is termed as clearing.
Settlement:
It refers to squaring off the positions. If the number of shares sold is more the Trading member shall deliver the shares. If no. of shares bought is more the trading member shall make payment and take delivery of the shares. The entire system is online Exchange may have in-house facility or Outsource the process.
Reply
#2

Every business ..depends upon the share market strategy.
profits made by the company you find in books of profits ..thus to make business top level we must follow trading processes and the settlements which are required in business strategy.
gear hobs
Reply

Important Note..!

If you are not satisfied with above reply ,..Please

ASK HERE

So that we will collect data for you and will made reply to the request....OR try below "QUICK REPLY" box to add a reply to this page
Popular Searches: clearing and settlement process of online and offline share trading, stock trading and settlement process, trading and settlement process, settlement process in trading, trading and settlement process in india ppt, a report on trading and settlement process, settlement process in trading ppt,

Forum Jump:


Users browsing this thread: 1 Guest(s)