Table of Contents
Types Of Share Market In India
Hello guys, today we will discuss Types of Trading in the Indian Stock Market.
Guys Indian stock market is not a small topic, it’s a highly advanced & International subject.
Lots of people think that the stock market is one type of gambling, an unnecessary market.
But they don’t know the stock market is World’s biggest trading business. They don’t know all the biggest companies’ main money funding source is the stock market. Also TATA, Ambani’s. in India
The stock market is an unlimited money source.
- Table content
- Introduction of Stock Market
- Types Of Share Market In India
- Forex Market
- Commodity market
- Equity Market
- Some Useful Articles
- My opinion
Types of Indian stock market.
The stock market can be divided into three parts.
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The first is the Equity market
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Second Commodity Market
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The third is the Forex market
What is Forex market?
The forex market is a foreign currency. Each country has its own currency. Indian currency is called Rupees and various foreign currencies like the dollar, euro, etc. are traded on top of all these currencies.
Forex exchanging is a tremendous market that began during the 1970s. Trillions are exchanged in unfamiliar trade consistently. Regardless of whether you are an accomplished merchant or a flat out fledgling to online forex exchanging.
Forex trading the most traded market in the world, with a global industry leader.
This type of trading is called forex trading.
But Only 10 percent of traders work on Forex trading in India.
The Second is the Commodity Market.
What is a Commodity Market?
A thing market is a physical or virtual business community for buying, selling, and trading unrefined or basic things. There are starting at now around 50 critical thing exhibits worldwide that energize trade about 100 fundamental products.
Trading Products of Commodity Market:
Base Metals: Zinc, Aluminum, Nickel, Brass, Copper, Lead.
Energy: Natural gas, Crude oil,
Agri commodities: Crude palm oil, Castor seed, Black pepper, Cardamom, Cotton, Mentha oil, Palmolein, Rubber.
Cereals and pulses: Wheat, Moong, Paddy (basmati), Barley, Chana, Maize rabi.
Bullion: Silver, Gold
Working Process of Commodity Market
Commodity Market not for Small traders, because here market fluctuation is too high, the required money is too high as a stock price.
On the commodity market, the cash segment is not available, only the future & option segment are available. That’s why you have to trade on lot wise.
On the commodity market, you cannot hold any stock for more than 30 days, at expiry your all commodity stock will be auto squire off.
That’s why In India, 20 to 25 percent of traders do this trading.
Details information about the commodity market clicks me.
The Third is The Equity Market.
All the companies in India that are included in the stock market and all the companies that we are trading in are falling into the equity market.
The equity market can be further divided into three segments.
- Cash trading
- The second is futures trading
- The third option is trading
Cash trading is the simplest trading system.70% of traders trade on Cash Market, Small Retailers to big companies are investing in the cash market.
In cash trading, you can buy any share or stock as your capacity & hold it as your wish. more than 8000 companies are listed on the Stock Market. You can buy any company’s stock.
Lots of facilities are available for Cash trading
- Small traders & big traders both are interested in Cash trading.
- On cash trading, you can buy stocks qty as your investment or capacity.
- You can hold stocks for the long term or lifetime.
- On cash trading, if you hold stocks for the long term than you can receive a Dividend(only Dividend stocks)
- Short sell is not applicable to the cash segment on delivery trading.
Read Short sell
Read Cash Segment
Options And Futures Trading
Here you can’t buy all the company shares, you can’t buy retail shares & you can’t buy according to your money, here you have to take the whole lot.
one lot is equal to 2000 shares, 3000 can be 5000 This means that just as you cannot buy retail goods in the wholesale market, you cannot buy retail shares in this market, you have to take the whole lot. And there are certain stocks in which you can trade. I will share the list of all those shares with you later.
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Rules of Future Trading
And these shares have a validity of only 30 days. the new lot is launched from the 1st day of validity till the 30th day of the English month. you can keep the shares as long as you like in this option and futures trading. Also, you can check the expiry date of any stock from your broker app or online.
On Options and futures trading, you cannot hold any stock for more than 30 days, at expiry your all stock will be auto squire off.
Here buying stocks & short selling stocks both have an expiry day. Before trading on you must check the expiry date on your trading software or app.
Even Options and future both are different rules, we will discuss them in another article.
Remember Options and futures trading is applicable to Derivatives stocks.
Sector-wise Stock
As I told you, there are more than 8,000 shares, some big companies, some small companies.
There are some companies that are very small in that the share price is two rupees five rupees ten rupees.
The shares can be divided according to the sector of the company and according to the value of the company.
Among the banking sector State Bank, ICIC Bank, HDFC Bank, IFC Bank, and all the banks in India are included in this sector.
IT sector:- TCS, Infosys Mind T, etc. are in the IT sector
Pharma Sector:- In the pharma sector, that is, in the pharmaceutical company, companies like Sun Pharma, Cipla, Torrent Pharma, etc. are studying. These sectors, I have discussed in detail in another article.
Some useful Articles
- Intraday & Positional Calls.
- Stock Market Technical Course
- How to Start own Cyber Cafe
- Best Way to Learn Stock Market in India
- What is Margin Trading in Share Market: Risks and Advantages
My Opinion
Anyway if you are a beginner then cash trading is mostly safe, forex & commodity trading highly risky & complicated. And also ignore Options and futures trading. After the experience, you can trade on this segment, so practice is most important.
Stay with us for full knowledge.
I hope you like my article Types Of Share Market In India and your knowledge has increased it a lot
If I have made a mistake in this article or if you have any questions, feel free to leave a comment in the comments box and I will try to answer your question as soon as possible.
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