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- One of the key aspects of investing in financial markets is sometimes investors overlook how to buy/sell different securities. All these avenues can be categorized into four main heads. They are (i) Brokerage houses, (ii) Directly from the illustrations, (iii) Banks, (iv) Individual investors.
- Stock prices/quotes is a list of prices (generally bid and ask) at which investors/ traders are willing to buy and sell an underlying stock at a particular point of time during any trading day.
- Various traders in the stock market include day traders, swing traders and position traders. These traders provide liquidity, stability and price discovery to the stocks.
- Margin trading allows traders to take leverage position in the market. Often, the brokers provide loan to the investors but ihe investor needs to maintain a minimum margin along with the brokers amount to hold position.
- Short selling is a process of borrowing securities from others and selling in the market in anticipation that the prices of stock will fall and the trader will cover position at lower prices.