25 Common Trading Terms Every Beginner in India Should Know

Stepping into the world of stock market buying and promoting can revel in overwhelming with all of the jargon thrown spherical. But don’t worry—in case you're a beginner dealer in India, gaining knowledge of the critical issue phrases will improve your self perception and assist you are making smarter selections.

Here’s a simple, no-nonsense phrase listing of 25 essential shopping for and promoting terms you need to understand in advance than setting your first trade on NSE, BSE, or through systems like Zerodha, Groww, or Upstox.

Basic Trading Terms

1. Stock

A percentage in the possession of a business enterprise. Example: Buying Reliance stock makes you a partial owner.

2. Equity

Another phrase for stock—ownership in a commercial enterprise corporation.

3. Broker

A individual or platform that executes purchase/sell orders on your behalf (e.G., Zerodha, Angel One, Upstox).

4. Demat Account

An account that holds your shares electronically.

5. Trading Account

An account used to area purchase and promote orders within the stock marketplace.

Market Terms

6. NSE & BSE

The essential stock exchanges in India—National Stock Exchange and Bombay Stock Exchange.

7. Sensex & Nifty

Market indices that constitute the pinnacle agencies:

Sensex = Top 30 BSE-listed businesses

Nifty 50 = Top 50 NSE-indexed organizations

8. Bull Market

A market fashion in which costs are rising.

9. Bear Market

A trend where prices are falling.

Order & Trading Types

10. Buy/Sell Order

A command to purchase or sell a inventory at a high-quality fee.

Eleven. Market Order

An order to shop for or sell right away on the exquisite to be had fee.

12. Limit Order

You specify the fee at which you need to shop for/sell.

Thirteen. Stop Loss

An automated order to sell if the inventory falls to a certain price to limit your loss.

14. Intraday Trading

Buying and promoting stocks on the equal day. High threat, excessive reward.

15. Delivery Trading

Buying stocks and retaining them beyond sooner or later. Ideal for prolonged-term shoppers.

Investment Tools & Strategies

16. SIP (Systematic Investment Plan)

Investing a hard and fast quantity frequently in mutual finances or stocks.

17. Fundamental Analysis

Evaluating a stock primarily based on enterprise health, income, earnings, etc.

18. Technical Analysis

Studying rate charts and patterns to count on inventory movement.

19. Blue Chip Stocks

Stocks of big, strong companies (e.G., Infosys, HDFC Bank).

Financial Metrics

20. Dividend

A part of company earnings shared with shareholders.

21. P/E Ratio (Price-to-Earnings)

A valuation ratio; excessive P/E may additionally moreover advocate overvaluation.

22. Market Capitalization

The widespread fee of a business agency’s shares (e.G., large-cap, mid-cap, small-cap).

Risk & Regulation Terms

23. Volatility

How an awful lot and the manner fast a inventory’s charge movements.

24. SEBI (Securities and Exchange Board of India)

The regulator of India’s securities market.

25. Circuit Limit

The better and decrease fee restrict for a inventory in an afternoon to save you excessive volatility.

Final Thoughts

Mastering those phrases is the first step inside the route of assured and informed shopping for and selling. Don't allow jargon scare you—the more you recognize, the higher you exchange.

Before putting your first order, recollect:

Open a validated Demat + Trading account

Set your risk limits

Avoid FOMO trades based mostly on hype