There are Various types of Trading in Our Indian Stock Market like:
- Equity/Cash Market Trading: This is the traditional way of buying and selling shares at the current market price. Investors buy shares with the intention of holding them for the long-term, and sell them when they believe the stock has reached its peak.
- Derivative Market Trading/Option Trading: This type of trading involves buying and selling contracts that derive their value from underlying assets, such as stocks or indices. The most common derivatives traded in the stock market are options and futures.
- Intraday/Day Trading: This is a short-term trading strategy where investors buy and sell shares within the same trading day. Day traders typically use technical analysis to make quick decisions and try to make a profit from the short-term price movements.
- Scalping: This is a type of day trading where investors hold a position for a very short period of time, usually seconds to a few minutes. Scalpers try to make small profits from small price movements by buying and selling shares quickly.
- Swing Trading: This is a medium-term trading strategy where investors hold a position for a few days to a few weeks. Swing traders try to make a profit from the medium-term price movements of a stock.
- Positional Trading: This is a long-term trading strategy where investors hold a position for several months or even years. Position traders try to make a profit from the long-term price movements of a stock, and they tend to use fundamental analysis to make investment decisions.