Share Market

Top five stock Market broker in India

RankBrokerActive ClientsClick to Open
1ZerodhaMore Than 36 LakhsOpen Account
2UpstoxMore Than 21 LakhsOpen Account
3ICICI DirectMore Than 15 LakhsOpen Account
4Angel BrokingMore Than 15 LakhsOpen Account
5HDFC SecuritiesMore Than 9 LakhsOpen Account
Top five stock Market broker in India: Source
Basics of stock Market
Basics of stock Market

What is Stock Market?

Stock Market is also a share market where companies’ shares, mutual funds, bonds, and derivative contracts are traded.

What is Share Market?

In the share market companies’ shares are traded by investors. There are two types of share market. which are the Primary share market and the Secondary share market. in the primary share market companies comes to raise their capital and get registered in the share market, they have to share details about the company, financials, promoters detail. then after they can be public through IPO (initial public offering ). In the secondary share market, an investor can buy or sell shares through brokers. individual or any company can buy shares of any company to become a shareholder.

What is Exchange (NSE and BSE)?

Exchange is the platform where buyer and seller can put their orders through a broker. then exchange checks both orders of sellers and buyers and executes the order if they match. this is a very transparent and automatic system. in India there are two exchanges first is the Bombay stock exchange (BSE-Since the year 1956) and the other is the national stock exchange (NSE- Since the year 1992).

What is SEBI?

SEBI full form is the Securities and Exchange Board of India. Securities and Exchange Board of India regulates the exchange stocks, brokers, listed companies, financial institutions investors, and retail investors. SEBI protects the investors through rules and regulations. promoting the stock market is the SEBI’s responsibility also.

What is Broker?

Broker is very active and important part of the stock market. an investor can put any order in any exchange through the brokers only. but the investor has to right to choose any broker or change also. Demat account opening, fund collection, and order placing for their client in the stock exchange are the three main works of any brokers. they charge for these facilities to their clients. this charge is called brokerage. Zerodha, Upstox, and angel broking are the top thee broker in India as onMay 2021.

What is a buy order?

When an investor places an order in the stock exchange to buy a new share, new options contract, or new bonds, etc is called a “buy” order.

What is a Sell order?

When an investor places an order in the stock exchange to sell their existing share, existing options contract, or existing bonds, etc is called a “Sell” order.

What is Ask Price & Bid Price?

Ask price is the price where a seller ready to sell their holdings. Bid price is the price where a buyer ready to buy new shares or bonds. these prices can be changed by the buyer and seller until trade execute.

What is Margin?

Margin is the minimum required capital that has to pay an individual to place an order in Stock exchange. stock exchange asks for margin money from the broker and broker collect from their client and transfer to the exchange.

What is Peak Margin?

After the new SEBI rules, it’s mandatory to have funded in your broker wallet equal to the peak margin. Actually, Peak margin is the maximum calculated risk on a financial instrument, This margin is compulsory to deposit in the stock exchange by the broker by end of the day. If we assume a maximum of 20 % risk should be possible in trade then the peak margin will be 20% of instrument value. Exchange calculates the peak margin for any instruments six times a day and shares the details with the brokers.

peak Margin flow chart Phase wise
Peak Margin
Peak Margin for equities = VAR (Value-At-Risk) + ELM (Extreme Loss Margin)
Peak Margin for FNO =SPAN + Exposure for F&O.
Peak Margin vary from shares to shares, it's decided by Exchange by the past performance of share and volatility of the share

What is Bull & Bear?

Share Market - 2
Bull and bear Pattern


What is Limit Order?

  • Regular+NRML/MIS+Limit
  • CO+MIS+Limit
  • AMO+NRML/MIS+Limit

What is Stoplos Order?

  • Regular+NRML/MIS+SL
  • Regular+NRML/MIS+SL-M
  • AMO+NRML/MIS+SL
  • AMO+NRML/MIS+SL-M

What is Market Order?

  • CO+MIS+Market
  • AMO+NRML/MIS+Market
  • Regular+NRML/MIS+Market

What is Day Order?

  • Regular+MIS+Market
  • Regular+MIS+Limit
  • Regular+MIS+SL
  • Regular+MIS+SL-M
  • CO+MIS+Market
  • CO+MIS+Limit

What is Volatility?

Volatility term used in the stock market to measure the rate of changing price of any stock or index. it means if a share price changing in a low band, it has low volatility, and vice-versa if a share price changing in a high band, it has High volatility. a swing trader always looking for high volatility to book profit in a short time. India VIX is the index of volatility.

What is Stock Symbol?

In the NSE and BSE, there are more than 2500 Companies are listed in many segments. There are also many companies listed in the stock exchange with their sub-company having matching name with parent companies. this is why the stock exchange gives a unique name for an entity. this helps to understand the difference between the two different companies’ Names. This unique name or code is called symbol for any company.

What is IPO?

When a company offers their shares to the public to raise their capital is call ‘initial public offering’ or IPO. a company have to register in the stock market to offer their shares

Disclaimer – This page content is purely for informational and educational purposes and in no way a piece of advice or recommendation to buy any financial products in the Stock Market.

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