5.1 – The Trading Terminal
Now that we know what influences the stock prices, it’s time we learn how to trade, and to be able to do that, we must understand how trading platforms work. Let’s dive into this video to learn more.
We will move on to the following video to learn about the stock market index.
We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- A trading terminal is your gateway to markets. You must know the operations of a trading terminal if you aspire to become an active trader.
- You can load the stock you are interested in on the market watch to track all the relevant information.
- Some of the basic information on a market watch is – LTP, % change, OHLC, and volumes.
- You need to invoke a buy order form by pressing the ‘B’ key to buying a stock. Likewise, to sell a store, you need to gather a sell order form by pressing the ‘S’ key.
- You choose a limit order type when you are keen on transacting at a particular price; else, you can opt for a market order.
- You choose CNC as a product type if you want to buy and hold the stock across multiple days. If you want to trade intraday, you choose NRML or MIS.
- An order book lets you track orders that are both open and completed. You can modify the available orders by clicking on the change button at the order book’s bottom.
- Once the order is completed, you can view the trade details in the trade book. In the case of a market order, you can view the exact trade price by accessing the trade book.
- You can press the F6 key to invoke the market depth or snap quote window. The market watch enables you to see bid and ask prices.
- The bid & ask prices refer to the price you can transact. By default, the top 5 bid and ask prices are displayed in the market depth window at all times.