The stock exchanges in India are well-structured marketplace where trading of company stocks and securities are conducted in a proper manner. There are 23 recognized stock exchanges, and the two most important ones are the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). All these exchanges are supervised and regulated by SEBI (Securities and Exchange Board of India). Before you venture out into the stock market, it is essential to understand the rudiments of stock trading India.

The stocks are traded in two ways; one, on the exchange floor, and second, electronically. Thanks to television and movies, we all are familiar with trading on the exchange floor. There are hundreds of people gesticulating and screaming, talking on their mobiles, watching the monitors and entering data in their notepads. After taking into consideration such a chaotic scenario, you might be more interested in learning the fundamentals of electronic or Online Stock Trading India. However, without understanding the trading on exchange floor, you won’t be able to do electronic trading. So, let’s continue with our commentary on exchange floor trading.

Suppose you want to buy 100 shares of XYZ Company. You will inform your broker about your intention, who in his turn will ask the floor clerk to find suitable sellers. The floor clerk will inform the company’s floor trader, who will eventually find another trader who is willing to sell off 100 shares of XYZ Company. Once, the price and deal is fixed, your broker will inform you, and after a few days you will receive a notification by mail. The entire process appears to be as simple as learning the ABC of Commodities Trading India. However, in reality it is not that straightforward. In electronic stock trading, computer networks find compatible buyer and seller. Human broker is still needed just to handle your trades and Equity Investment India.

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