Cursory Look at Stock Market Trading

Stock Market, as tricky and uncertain it can be, is still considered one of the best investments grounds. It is believed in by investors all across the globe and the riches have never doubted it. Large amounts of money are being made through stock market and it can single handedly be considered something that uphill’s or downhill’s the GDP (Gross Domestic Product) of any country.

There are a lot of advisory firms in India, which provide Stock Option Tips to trade profitably.

Indian Stock Market being a large platform for good investment, still lacks a bit of investors. Well, there are two types of people, the one who know about the great investing opportunities in India and the others who do not. You might consider India as a smaller ground for investing as compared to other developed countries like US, but on closer inspection you will be looking into a very promising market. There are ample of reasons why investing in Indian Stock Market is healthy but firstly, let me introduce you to the system.

Indian Stock Market is mostly run by two stock exchange, namely NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Bombay Stock Exchange being the older one, has existed since 1875, whereas, on the other hand the National Stock Exchange was introduced in 1992 and started in around 1994. Both of these stock exchanges work on very promising terms. BSE existing for a longer time has 4,700 firms as counted in the last total, wherein, NSE has around 1,200 firms. Though, something that makes BSE so special is that it is only 500 of its firms that contribute to 90% of its market capitalization. Other firms consist of highly illiquid shares or investments. All the important firms are listed on both of these stock exchanges. As of 2009 analysis, NSE has a dominant share of around 70% of the market. Both of these exchanges compete for order flow that helps them in reducing costs, efficient market and also, innovation.

How does trading happen?
Most of you might not be familiar with the system of Limit Order Book. Trading in both of these exchanges takes place through an open electronic limit order book. In the system, order matching is done by the trading computer itself. It is completely electronic based which eliminates the existence of any market makers or specialists. Therefore, market orders are automatically matched with best limit orders. This results in anonymous trading system. Also, another benefit of this is that is shows all that is being sold and bought like a transparent system.

Trading system works through brokers, therefore, all orders need to be placed via them. They even provide online trading facility to retail customers. Direct Market Access can be another advantage for the investors.

Why Indian Stock Market?
Now, India may seem like a smaller market as compared to other developed countries but it has a lot to offer. Indian Stock Market has investors and registered firms from all across the globe that can provide with ton of innovative opportunities to the shareholders. It is an ever-growing market and hence, due to its endless reach and transparent system, along with great investment sectors. There’s no disappointing here for sure.

To make your stock market venture a success you can rely on Stock Option Tips from expert advisors.