Trading of Stock Exchanges

8/13/2019 Trading of Stock Exchanges

1/16

Presented by: Priyanka S Jigajinni

USN: 1PH12MBA05


2/16

Introduction

Investors place, buy and sell orders with members of the stock

exchanges in different ways as given below:

Limit orders- orders are limited at a fixed price.

Best rate order- broker is given the authority to best execute the

rate.

Discretionary order- investor gives the range of price for purchase

and sale.

Stop loss order- broker is authorized to sell the shares if it falls

below the limit to prevent future loss.


3/16

Online trading

Stocks purchased and sold through the internet is

known as online trading.

All the stock exchanges offer e- trading facility.

This provides more transparency in transactions as the

investors knows exactly when at what rate his order was

processed.


4/16

Procedure

Register with online trading portals listed.

Open a bank account.

Must be a registered iConnect user.

On placing a order for the first time through his bank account, he

will be directed to a login screen of the investorsaccount.

Once the login and password are entered, he has to verify the

transaction details and confirm the transactions by entering his

login details.

His account status will be updated on real-time basis and hence

the security status can be viewed online after the day of


5/16

Day Trading

Holding the stock positions within the current trading

day is known as day trading.

It is the safest way to do trading, as the trader is not

exposed to potential losses that can occur overnight.


6/16

Types of day trading

Scalpers- involves rapid and repeated buying and

selling of a large volume of stocks within seconds or

minutes.

Momentum traders- trader identifies the move patterns

of the stocks during the day and buys stocks at bottoms

and sell at tops within a day.


7/16

Advantages

No overnight risk.

Leverage.

Gains from market movement.


8/16

Margin Trading

Trading with borrowed funds or securities is called

margin trading.

Helps investors trade over and above their owned funds.

It is leveraging mechanism.

SEBI regulates by prescribing the eligibility conditions

and procedures to be followed.


9/16

Trading in BSE

Initially it adopted open outcry.

In the year 1995, to facilitate efficient processing of an

order- driven system they started with automatedcomputerized mode of trading known as BOLT.


10/16

Securities group

It has classified the scrips in the equity segment into

A, B,T and Z on the basis of qualitative and

quantitative parameters.

T represents- trade to trade basis.

G trading in government securities.

Z covers list of companies that fail to comply withlisting requirements and resolve investor complaints.


11/16

Indo Next

The BSE and the Federation OF Indian Stock

Exchange(FISE) jointly created an alternate national

platform named BSE IndoNext, to enable old and new

SMEs to raise equity and debt, and facilitate trading in

such companies.

There are 2 groups in this settlement:

1. S group for regular scrips.

2. TS group for trade to trade settlement scrips.


12/16

Trading in NSE

It offers a fully automated screen based trading system,

known as the National Exchange for Automated

Trading(NEAT) system.

Using NEAT members across the can trade

simultaneously with enormous ease and efficiency.

There is a uniform response time of less than 1.5

seconds for all the trades entered into the NEAT system.


13/16

Conti

The exchange currently operates in three market

segments:

1. Capital market segment.

2. Wholesale debt market segment.

3. Futures and options segment.


14/16

Over the counter exchange of India.

Started in 1992 and modelled after NASDAQ and

JASDAQ.

Objective is to provide a market for the smallercompanies.

Trading across the counter refers to the location of the

members or dealers of the OTCEI where the deal or

trade takes place.


15/16

Criteria for the Scrips to be traded

Minimum capital of Rs. 3 crore and should not exceed

Rs. 50 crore.

Companies with issued capital of more than Rs.30 lakhand less than Rs.300 lakh, the min. public offer should

be 25% of the issued capital or Rs. 20 lakh worth of

shares at face value, whichever is higher.

Companies with more than Rs.30 crore must comply

with listing requirements and guidelines that are

applicable to such companies in other stock exchanges.


16/16

Thank You

Documents

Trading of Stock Exchanges