Part 9 - Explore Every Trading Option in the Indian Market

Types of Trading in the Indian Stock Market: A Complete Guide

In the Indian stock market, you can trade in multiple types of financial instruments and market segments. Here’s a categorized breakdown of all the major types of trading available:

1. Equity (Cash Market)

Intraday Trading – Buy and sell the same stock on the same day.

Delivery Trading – Buy stock and hold it beyond one day.

BTST (Buy Today Sell Tomorrow) – Buy today, sell tomorrow (without delivery).

STBT (Sell Today Buy Tomorrow) – Sell today, buy tomorrow (only in futures).

2. Derivatives

Futures Trading

Stock Futures

Index Futures (NIFTY, BANKNIFTY, FINNIFTY, etc.)

Options Trading

Stock Options

Index Options (most traded: NIFTY, BANKNIFTY)

Strategies like: Straddle, Strangle, Iron Condor, etc.

3. Commodity Trading (via MCX or NCDEX)

Bullion – Gold, Silver

Base Metals – Copper, Aluminium, Zinc, Nickel, Lead

Energy – Crude Oil, Natural Gas

Agri Commodities – Cotton, CPO, Mentha Oil, etc.

4. Currency Trading (via NSE or BSE FX segment)

INR pairs like:

USD/INR

EUR/INR

GBP/INR

JPY/INR

Cross-currency pairs (available on NSE): USD/JPY, EUR/USD, GBP/USD

5. Debt Market (Bonds)

Government Securities (G-Secs)

Treasury Bills

Corporate Bonds

Tax-free Bonds (occasionally offered for retail)

6. Mutual Funds & ETFs (via stock market or direct platforms)

Equity Mutual Funds

Debt Mutual Funds

Index Funds

ETFs (Nifty ETF, Gold ETF, etc.)

7. SME and Startup Trading Platforms

For trading in Small and Medium Enterprises (SME) listed stocks.

8. REITs & InvITs

REITs – Real Estate Investment Trusts (e.g., Embassy REIT)

InvITs – Infrastructure Investment Trusts

9. IPOs (Initial Public Offerings)

Primary market – You apply for shares before listing.

Listing Gains – Sell on listing day for profit.

10. Other Segments (Advanced)

SLBM (Stock Lending and Borrowing Mechanism)

ALGO Trading – Automated rule-based trading.

Arbitrage Trading – Exploit price differences between markets.

Trading primarily occurs on the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange (MCX), and Metropolitan Stock Exchange of India (MSEI).

Instruments like derivatives, ETFs, REITs, and InvITs require specific knowledge and carry varying risk levels.

Some instruments (e.g., IPOs, rights issues) are available only during specific periods.