Mastering the Trading Process: Key Terminology and How to Trade Stocks Like a Pro

• How Do I Start Trading Stocks?
• What Happens When I Place a Trade?
• Decoding Trading Terminology
• Why Does Exchange Choice Matter?
• FAQs: Your Trading Questions Answered

Ever wondered how stock trading actually works? From setting up your trading account to understanding bid-ask spreads and 52-week highs, this guide breaks down everything you need to know. Whether you're a newbie or a seasoned trader, we’ll walk you through the nuts and bolts of trading on exchanges like BSE and NSE (and yes, we’ll even throw in some crypto context with BTCC). Buckle up—it’s time to demystify the market!

How Do I Start Trading Stocks?

To begin trading, you’ll need three things: a savings bank account, a demat account, and a stockbroker who’s a member of major exchanges like BSE or NSE. Here’s the kicker: not all brokers support both exchanges, so double-check before signing up. Pro tip: Opt for a broker with online trading platforms—it’s faster than calling in orders. For example, ICICI Securities, Zerodha, and BTCC (for crypto) offer seamless digital interfaces. Don’t forget to LINK your mobile and email; brokers use these to send real-time trade confirmations and contract notes. Fun fact: BSE lists 7,000+ stocks, while NSE has 2,000+, but only a fraction are actively traded.

What Happens When I Place a Trade?

Imagine you’re buying Infosys (NSE: INFY). You log in, enter the quantity (say, 10 shares) and price (₹1,500), and hit “Buy.” Your broker routes this order to the exchange, where it waits in the “bid” queue. If a seller matches your price, voilà—the trade executes! You’ll get an SMS instantly. Settlement follows at T+2 (for funds) or T+0 (for shares). Offline trading? Same drill, but you’ll phone your broker instead. Post-market, you’ll receive a contract note—a legally binding receipt—plus DP and margin statements. Data sources like TradingView can help track these moves.

Decoding Trading Terminology

Security Symbol

Every stock has a unique ID. BSE uses numbers (e.g., Infosys: 500209), while NSE prefers abbreviations (INFY). Think of it as a ticker nickname—short, snappy, and essential for placing orders.

Bid vs. Ask Price

The bid is what buyers will pay (₹1,499 for INFY), and the ask is what sellers demand (₹1,501). The difference? That’s the spread, where market makers profit. High liquidity = tighter spreads.

Total Traded Quantity (TTQ) & Value (TTV)

TTQ is the day’s total shares traded (e.g., 1 million INFY shares), while TTV is TTQ × price (₹1,500 × 1M = ₹1.5B). These metrics gauge a stock’s activity—useful for spotting trends.

52-Week High/Low

Infosys’ 52-week range might be ₹1,200–₹1,800. Breaking the high? Bullish signal. Nearing the low? Time to dig into fundamentals.

Why Does Exchange Choice Matter?

BSE’s broader listings include small-caps, while NSE dominates derivatives. Some stocks (like Reliance) trade on both, but liquidity varies. Example: NSE’s INFY sees 10x the volume of BSE’s. Always check where your stock is most active!

FAQs: Your Trading Questions Answered

What’s a contract note?

A legal record of your trade, including fees, taxes, and timestamps. Keep it for tax filings.

Can I trade without a demat account?

Nope. Shares must be held electronically—no paper certificates anymore.

How do I pick a broker?

Compare fees (Zerodha: ₹20/trade), platform ease (Upstox’s UI rocks), and research tools (BTCC’s crypto charts are slick).