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srinivash c g and Geetha are now friends 7 years, 9 months ago
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Naveen and Geetha are now friends 7 years, 9 months ago
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logawin and Geetha are now friends 7 years, 9 months ago
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Ganesh and Geetha are now friends 7 years, 9 months ago
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Balaji and Geetha are now friends 7 years, 9 months ago
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Geetha replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 6 months ago
Margin: A margin in the futures market is the amount of cash an investor must put up to open an account to start trading.
MTM: The futures prices are bound to change every day, the differences in prices are settled on daily basis from the margin. This process is called marking to market (MTM).
Premium: The income received by an investor wh…[Read more]
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Geetha replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 6 months ago
Future Contract is a contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price in the future.
Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. …[Read more]
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Geetha replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 7 months ago
In derivatives market, people can transact huge transactions with small amounts and therefore it gives the benefit of leverage and hence even people who have less amount of money can enter into this market and also the costs such as basis expense, brokerage are less as compared to cash market.
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Geetha replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Equity market or stock market is the meeting point for buyers and sellers of stocks. The securities traded in the equity market may be either public stocks, which are listed on the stock exchange or privately traded stocks.
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Geetha replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Derivatives instruments in India are regulated by the Reserve Bank of India, Securities and Exchange Board of India (SEBI) and Forward Markets Commission (FMC). They play a major supervisory and advisory role in derivatives both with buyers and sellers in transaction and settlement on a daily basis.
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Geetha replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 7 months ago
The derivatives instruments are futures contracts or options, which are derived from other forms of assets.
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EQSIS and Geetha are now friends 8 years, 7 months ago
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Geetha replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 7 months ago
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
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Geetha replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 7 months ago
A derivative is a financial contract with a value that is derived from an underlying asset. Derivatives have no direct value in and of themselves. Their value is based on the expected future price movements of their underlying asset. The buyer and seller has to pay certain amount of money called margin money to enter the derivatives. The e…[Read more]
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Geetha replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 8 years, 7 months ago
In trading, we can fix the stop loss and come out at any time. We can know the risk/reward ratio associated with the stock and can know all the information about the company of the stock. Trading is not based on luck, but depends on trading with knowledge and discipline.
In gambling, we can’t fix the stop loss and come out at any time. We ca…[Read more]
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Geetha replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 8 years, 7 months ago
Stock tradings are done through registered brokerage firms in SEBI. These brokerage firms pay collateral deposits to SEBI to register themselves as brokers. The traders are ensured of the counter party risk with this collateral deposit made by the brokers.
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Geetha replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 8 years, 7 months ago
To place a market order is to order to buy or sell immediately at the best available price. These orders do not guarantee a price, but they do guarantee the order’s immediate execution.
Types of orders are to buy and sell. If you are going to buy a stock, then you will pay a price near the posted ask. If you are going to sell a stock, you will…[Read more]
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Geetha replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 8 years, 7 months ago
The time required for a trade is a period of time for the seller and the buyer coming to an understanding with a same price. When an understanding has been arrived, the trade takes place immediately, but the trading plan requires a long time.
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Geetha replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years, 7 months ago
Long position means holding a stock and selling the same in a long period of time.
Short position means holding a stock and selling the same in a short period of time.
Long unwinding is the most common way to close a position, is to sell a security that is owned for a long time.
Short covering is buying in of stocks that has been sold short,…[Read more]
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Geetha replied to the topic Is it possible to buy stocks from BSE and sell it on NSE? How and what is the limitation? in the forum Basics of Stock Trading 8 years, 7 months ago
Buying a stock from an exchange and selling in another is called Arbitrage, which is possible with BSE and NSE.
Both the stock and the broker, with whom we are trading should be registered in both exchanges i.e. BSE and NSE. It is not possible in intraday trading.
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