Saturday, July 11, 2009

Learn Share Market Trading


Share market terms and Share trading.........

Open - The first price at which the stock opens when market opens in the morning.

High - The stock price reached at the highest level in a day.

Low - The stock price reached the lowest level in a day.

Close - The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day.

Volume - Volume is nothing but quantity.

Bid - The Buying price is called as Bid price.

Offer - The selling price is called offer price.

Bid Quantity - The total number of shares available for buying is called Bid Quantity.

Offer Quantity - The total number of shares available for selling is called Offer Quantity.

Buying and selling of shares -


Buying is also called as demand or bid and selling is also called as supply or offer.

First selling and then buying (this only happens in day trading) is called as shorting of shares or short sell.

Share Trading - Buying and Selling of shares is called share trading.

Transaction - One complete cycle of buying and selling of shares is called One Transaction.

Squaring off - This term is used to complete one transaction. Means if you buy then have to sell (means square off) and if you sell then you have to buy (means square off).

Limit Order - In limit order the buying or selling price has to be mentioned and when the share price comes to that price then your order will get executed with the mentioned price by you.

Market Order - When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order get immediately executed at the current available price.

Stop Loss Orders - Stop loss orders ("stops") are limits set by traders at which they will automatically enter or exit

Trades - an order to buy or sell is placed in the market if price reaches a specified limit.

A stop loss order is set to limit a trader's potential loss. The stop loss is placed below the current price (to protect a long position) or above the current price (to protect a short position).

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