What is the Pro / Cons of Equity market from traders’ perspective?

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Pro – Settlement happens at the same day of trading.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Cons – 100% investment is needed to trade as well as short covering has to happen before the closing time of the stock market to avoid penalty.</p>

[Sriram Raghavendran]

Pros – Settlement can be done on the same day or indefinitely

Cons – It becomes gambling if rewards < risk

[Gokul Ramachandran]

Pros:

1. Probability of value of stock to crash to zero is very less, so it is less risk compared to derivative instruments.

2. Liquidity.

Cons:

1. Cannot customize trade and assume short position for a long time.

2. Profit margin is low compared to derivatives as entire value of the stock has to be paid upfront.

[Priya Vignesh]

Cons – 100% investment is needed, pro – settlement is done on same day.

[Aravind T]

Pros:

1.Liquidity

2.Settlement is done on the same day

Cons:

1.Need to invest 100% money

2.Cannot take up a short position for a long time since settlement has to be done on the same day.

[Author]

Posts