Trading in the stock market means buying and selling shares through a broker. Here’s the process step-by-step:
To trade, you need:
Demat account → stores your shares electronically
Trading account → used to place buy/sell orders
Linked bank account → for money in/out
(If you're in India, accounts are usually with brokers like Zerodha, Upstox, Groww, etc.)
You want to purchase shares.
You want to sell shares you already own (or sell first if doing intraday).
There are different ways to place orders:
Market Order → Buy/sell immediately at the current price
Limit Order → Buy/sell at a specific price you choose
Stop-Loss Order → Automatically exits a trade to prevent a big loss
Stop-Limit / SL-M → Smart versions of stop-loss
Your broker sends the order to the exchange (NSE/BSE in India).
The exchange:
Matches your buy order with someone’s sell order
Executes the trade if prices match This happens in milliseconds.
Once matched:
If buying → shares get added to your Demat
If selling → money is credited to your account
In India, settlement is T+1 (Trade date + 1 working day).
So shares/money are fully transferred the next day.
You can:
Hold long-term
Do short-term trading (intraday)
Do F&O trading (advanced)
You place a limit order to buy TCS at ₹3,500.
If a seller is ready to sell at ₹3,500 → trade happens → you now own TCS shares.
Trading works like this:
You place order → exchange matches orders → trade completes → settlement happens
