Types of Trading In Stock Market

Trading in stock market is a vast subject for Brokers & Traders. In addition, there are different “types of trading in stock market” in the world that allows you to invest your money. It is up to you how you want to invest your money in the stock market, you can choose the way other billionaires use to invest their money in the market or you can choose your own form to invest.

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Let’s take examples of different types of trading in stock market. If you want to make money faster then you can invest in short term trading. And same as if you want a big profit then you need to invest your money for the long term.

Different Types of Trading In Stock Market

Different types of trading in stock market:
1. Intraday Trading
2. Delivery Trading
3. Short Sell
4. Buy Today Sell Tomorrow
5. Sell Today Buy Tomorrow
6. Margin Trading

1. Intraday Trading

Intraday trading is one of the types of trading in stock market world and globally it is also known as day trading. In this form of trading, a trader can buy and hold the stocks for a day, for a minute, for a hours, and for a few seconds. Basically, traders only can hold the stock until the end of the day market. Therefor trader needs to buy and sell the stock on the same day.

So, “Intraday trading” allows you to earn money quickly, and even it very risky type of trading. You need to be more active, or a quick decision-maker for this trading form to earn faster.

2. Delivery Trading In Stock Market

In Delivery trading strategy, traders invest for the long term and track it for the right opportunity. Means, you can buy share or stock and hold it for a long time period. An example, you can hold your stock for a day, week, months & years for the right time when your stock hike by multiple percentages as per your goal and sell it at the right time.

3. Short Sell Trading

Short Sell is the most strategic type of trading. In this trading, traders sell before buying the stocks. The purpose of this strategic trading is to decrease the loss of the holding stock.

Let’s elaborate this with an example, I hold a stock of XYZ company, and that company starts to fall down in the market. So what I will do, I ‘ll sell out my half of the stocks and will wait for the lowest point of fallen price and buy it again at the lower price of the season. That how I can minimize the loss for the particular stock.

4. Buy Today Sell Tomorrow (BTST)

As the name suggests, in this type of trading, you buy today and sell tomorrow. In a delivery based trading, the shares are delivered to your Demat account after two days, so you cannot sell your stocks before the stocks are delivered to your account. But in BTST you can buy today and sell tomorrow even without having delivery of the stocks.

5. Sell Today Buy Tomorrow (STBT)

STBT is exactly opposite to the BTST trading style. Here you sell today & buy tomorrow. This type of trading is allowed for the derivatives market only & not for the stock market. In STBT the trader sells first i.e He first sells his position today & tomorrow he will buy the position when the market goes down.

6. Margin Trading In Stock Market

What is margin trading? Margin trading is similar as Intraday / Day Trading. But in Margin trading, you can buy the stock more than you afford, the broker will help you to buy the stock without getting paid. It is one of the types of trading in stock market to make money quickly in bucks.

Let’s take an example, I buy stock for 100$ without paying a broker a single penny, and if the stock jumps to 150$. So, the broker will keep his payment of 100$ and then I’ll invest that profit of 50$ to buy the stock again.

Types of Trading In Stock Market

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