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Hariesh replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 2 months ago
Futures is a deal which is made to be excuted at the end of the expiration date at the agreed price. For that agreement caution deposits should be paid.Money will be settled on day to day basis.we can either sell and buy the deal in the middle of the expiration date.Caution deposit will be settled at the end of the expiration date or when it is…[Read more]
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Hariesh replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 2 months ago
No need to pay full amount at the beginning Premium is only paid at the beginning .If it goes out of the money then the option may not be executed.The maximum loss for the option holder is only the premium.We can customize the trade in options.Money can be witness at the end of the expiration date.Reward is higher than spot market.
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Hariesh replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 2 months ago
Futures and options
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Hariesh replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 2 months ago
Adv:
It is an investment
People who has invested may get returns from it
Disadvantages:
100% amount should be paid while buying
The buyer can witness Money only if he sells it
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Hariesh replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 2 months ago
The role of the exchange is to reduce the counter party risk and serves a medium for buyers and sellers.
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Hariesh replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 2 months ago
Call option:
It gives the right but no obligation to buy a stock at an agreed price within a certain period of time.The premium is decided by the seller of the call option.
Put option:
It gives the right but no obligation to sell a stock at an agreed pice within a certain period of time.The premium is decided by the seller of the put option.
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Hariesh replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 2 months ago
In future contract both buyer and seller has rights to buy and sell
In option contract buyer has only rights and no obligations and the seller has only obligation but no rights to execute
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Hariesh replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 2 months ago
Trading is a buying and selling of shares.
Analysis is the process when to buy or when to sell using fundamental analysis or technical analysis.
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Hariesh replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 2 months ago
Specify the price and select if you want to buy or sell.
There are two types of order buy order and sell order
validity of order is to execute the order within a day or immediately.
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Hariesh replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 2 months ago
When buying and selling of stocks is done online then it is called online trading.
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Hariesh replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 2 months ago
Some people chose stock trading for investing and to get returns from it.Some people use it for making money in a short period of time.
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Hariesh replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 2 months ago
Long is the buy of shares for the first time.
Short is the selling of shares without having shares in the demat account.
Long unwinding is the selling of shares after buying.
Short covering is the buying of shares after selling it.
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Hariesh replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 2 months ago
Trade plan is doing analysis before executing the trade.It is essential to derive risk and reward.
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Hariesh replied to the topic How Stock trading take place? – Explain the role of broker/exchange/ SEBI/ Govt/ BANK? in the forum Basics of Stock Trading 7 years, 2 months ago
Stock trading takes place when buyer price meets the seller price or when seller price meets the buyer price.
The role of broker is to transfer the stocks from buyer to seller and inform it to exchange.
The role of exchanger is to control the brokers and get informations from the brokers
The role of SEBI is to bring transparency to the…[Read more]
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Hariesh replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 2 months ago
Positional trading is holding a stock for a longer period of time
In intraday trading , holding period of stock is within a day
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Hariesh replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 2 months ago
If risk is higher than reward then it is gambling. When reward is higher than risk then it is business.
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Hariesh replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 2 months ago
<p style=”text-align: left;”>The buyer and seller decides the stock price.</p>
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Hariesh replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 2 months ago
Trading doesn’t take much time but the delivery only takes time.The stocks are received in the demat account only at the end of the day .
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Hariesh replied to the topic What happens if I quote high price to buy a stock compared to its current market price? in the forum Basics of Stock Trading 7 years, 2 months ago
The trade will get executed immediately with the top seller . The higher price only means it can buy upto that price not at that price.
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Hariesh 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 7 years, 2 months ago
Yes, It is possible buy stock from bse and sell it on nse and vice versa . Only intra day trading is not possible.
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