What Is Stock Trading?

The stock trading can be defined as a market that the buyer and the seller meet through intermediaries.Between the parties, investment instruments such as stock certificates, bill of exchanges, bonds are changing hands within stated  rules.It is not necessary for the buyer and the seller to come face to face during this shopping.The parties inform the stock exchange  brokers of the transactions what they want to do. So that  the stock trading  is realized.



Stock certificates  known as a precious paper and commodities that are defined as commodities are traded in the corporate market, which is called the stock exchange.
Here, prices are formed by supply and demand. As the supply and demand changes due to the events happening in the world and the country, "the exchanged has fallen or has risen" is interpreted. Investors can earn money if they accurately predict these possible movements.

Buying and selling transactions on the stock exchange take place in electronic environment, according to supply and demand. By giving an example of this process, we can understand both of the stock trading  and the supply-demand relationship in a better.

Let's say you want to get the stock certificates of A. You have to be someone who wants to sell the  stock certificates of A against you so that your transaction is done. Your purchasing order and the sales order of someone else are collected in an electronic environment (board or screen in jargon of stock exchange).

Request for purchase is called demand transaction and demand for sale is called supply transaction. When these processes meet each other, the transaction is realized.So if you want to buy from the level you want to sell someone who is satisfied with your purchase will be carried out transactions.

Another example; assuming that you gave orders for X stock certificates to the stock exchange as below :

1 - Sell to 100 $
2 - Buy to 110 $

Your order from your sell to 100 $ when you compare someone else's order with buy to100 $; your sale, and the other side purchases is carried out.If the buy orders are less than the sell orders, sales will take place as much as buy orders, others will be put on hold.

Namely , if you  give 15 sell orders. On the other hand, if there are 10 buy orders,then a 5-sale order is taken. In this case you either cancel your order or you are waiting.

Through the examples we have provided for buying and selling transactions, you have more ideas about what stock market trading is. Then you can expand your knowledge by going to other topics.

See you later :)