If something has changed in recent years, and for the better, it has to be people’s growing interest in trading. While our earlier generations most of the time thought stock market as a gamble, our generation is changing the mindset. However, still only a fraction of the Indian population trades in the Indian markets, and one of the reasons behind this can be that people are not able to understand the market well and thus remain afraid of it. But as they say, when there is will, there is a way, and the way can be the best trading courses in Hindi. Yes, you can learn trading from scratch in your mother tongue without worrying about a language barrier.
In this article, we will try to discuss the basics of the stock market and trading. From how the market works, to trading process, market participants, types of assets, and the difference between trading and investment, we will cover it all.
So, let’s begin.
Understanding the Trading Process
In simple terms, trading is the buying and selling of securities to make a profit. The trader has to gauge whether the market will go up or down, and accordingly place their bet to buy or sell securities to earn profit. The profit is generated from the difference between the buying and selling prices.
For buying and selling of the securities, traders use different analytical tools and strategies such as technical analysis, fundamental analysis and risk management tools and strategies. These helps in understanding the market trend which is crucial in trading securities.
For instance, if the trader analyses that the market will go up, or a particular stock price will go up, he or she can buy the stock in order to make a profit. On the other hand, if the trader thinks the market will go down, then he or she can sell the stock/ securities in order to generate income. For a detailed understanding of these trading techniques and tools, you can join the best courses for stock market.
Understanding Market Participants and Their Role
To understand how the market works in a better manner, you need to learn about the market participants who participate in the market and their roles. While you can learn about these in detail with free stock market courses, here is a brief idea to get you started.
- Traders and investors: Traders and investors buy and sell securities that are listed on the stock exchanges.
- Stock Exchanges: Stock Exchanges are the financial institutions where securities are listed for trading and investments. When a stock is offered to the public for the first time, the IPO launch is in the primary market, it is when the stock has not been listed and traded earlier. Now once the stock is listed, it is then traded in the secondary market and all these are taken care by the stock exchanges.
- Brokerage Houses: The link between the stock exchanges and the investors and traders is the brokerage houses. They offer the facilities to trade and invest in securities that are listed on the stock exchanges. You cannot directly trade with the stock exchanges. Apart from trading and investment services, the stock brokerage houses also offer some of the best courses for stock market. The brokerage houses also act as the link between depositors and investors, and traders.
- Depositories: Then comes the depositories, which hold, maintain all the securities listed on the stock exchanges. When you open a free Demat account, the account is opened with either of the two depositories in India – NSDL and CDSL. They act like a bank where the securities are stored in an electronic format in the Demat account, and they maintain the account for which they charge the traders and investors.
- Clearing Corporations: These are the organizations that are entrusted with the role of processing the clearance for the trades and investments taking place. They clear the translations and transfer the amount to the required account of the buyer to the seller as per the nature.
- Regulator: Finally, there is the regulator of the stock market – Securities and Exchange Board of India (SEBI), which makes all the rules and regulations for the market participants, and keeps an eye on whether these are followed or not, and accordingly, there are penalties and charges, and other measures to regulate the market.
Types of Assets in the Stock Market
Now you have understood how the market works, who the market participants are, let’s see which assets are traded in the Indian stock market.
- Stocks: These are the equity shares of the listed companies available on the stock exchanges.
- Bonds: These are debt securities that are issued by both corporate houses and the Government of India.
- Commodities: These include different commodities like gold, silver, oil, agricultural products, metals, minerals, and more. These are traded on the Commodity Exchanges such as MCX in India.
- Derivatives: These are financial contracts that derive their value from the underlying assets’ price movement.
- Currencies: The foreign currency pairs are also traded in the market, for instance, USD/INR, USD/EU.
You can learn about these assets in detail, and their trading strategies with Stock market courses for beginners. You can easily find them online.
Wrapping up
So, if you are interested in trading, and want to learn it from scratch, and build a strong foundation, find the best trading courses in hindi today and join to explore the markets and different assets, and more.
