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jagadheesh replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Equity market is a trading place where people can buy or sell shares.
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jagadheesh replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 7 months ago
A call option gives an option buyer(then holder)the right but not the obligation to buy the underlying stock at a pre-specific price and at a expiry date.
A put options gives an option buyer(then holder)the right but not the obligation to sell the underlying stock at a pre-specific price and at a expiry date.
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jagadheesh replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Margin – Buying a stocks,by using funds -you borrow from your broker
MTM – Market To Market is method of valuating profit and loss
Premium – Is an price of the Contract
Strike Price – Is the fixed price that the underlying stock can be purchased as state on the options contract
Expiry Date : The final day of the contract
Lot size : The mi…[Read more]
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jagadheesh replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 7 months ago
The futures owner has the obligation to buy or sell a particular contract a specified quantity, at a specified price ,on a specific date.Options holder has only right (Not Obligation) to buy or sell a particular contract in particular quantity, at a specified price ,over a specified time period.
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jagadheesh 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
1. Deciding the Premium for both the contracts
2.Collecting the premium and do settlement in MTM (Market-To-Market) basis.
3. Regulating and monitoring the transactions
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jagadheesh replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Derivative instrument are the category of financial instruments that includes futures and options contracts.
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jagadheesh replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Pros : 1. Large number of companies
2. Liquidity 3. opportunity for substantial return
Cons : 1. Investing can be time consuming 2. Market volatility
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jagadheesh replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 7 months ago
Futures contract is contract where both parties agree to buy and sell a particular asset of specific quantity and at a preddtermined price with specific date.
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jagadheesh 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
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.
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jagadheesh replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 7 months ago
The Spot and Cash Market both are same. Equities are traded for immediate delivery and the Prices are settled in cash on the spot at the current market prices.
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jagadheesh replied to the topic price movement in the forum Stock market questions and answers 8 years, 8 months ago
Price Movement : Stock price change every day as a result of market forces.By this we mean that share prices change because of Supply and Demand . If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and…[Read more]
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jagadheesh replied to the topic price movement in the forum Stock market questions and answers 8 years, 8 months ago
Price Movement : Stock price change every day as a result of market forces.By this we mean that share prices change because of Supply and Demand . If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and…[Read more]
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jagadheesh replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental Analysis we need details of the follwing
1. Company Assets 2. Liabilities 3. Balance sheet 4. Revenues and costs 5. Branding Value 6. Margins and Earnings 7. Earning Ratios 8. Cash flow statement 9. Operating cash flows 10. Investing and Financing cash flows and etc…
Technical Analysis tools are
1. Charts 2.…[Read more]
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jagadheesh replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 8 years, 8 months ago
During 2014 -20115
The Average daily turn over in NSE cash market is RS 17811 crore
The average of Derivative segments is 2,28,824 crore
so no one can manipulate the stock price for the long time, In rare case-may be the very big investors can manipulate the price only very short period time.
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jagadheesh replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Technical Analysis is a method that makes buy and sell decisions using market statistics, such as chart of price, volume,demand and supply.
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jagadheesh replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 8 months ago
Three types of chart:
1. Line chart
2. Bar chart
3. Candle sticks chart
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jagadheesh replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Pros : 1. Determining the intrinsic value of investment
2. Identify opportunities for long – term investment
3. Helps to find out the actual price of the stocks
4. Fundamentals do not change based on external news
Cons : 1. Time consumption are very high
2. It can be expensive, lengthy and complex process
3. your still making prediction…[Read more]
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jagadheesh replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental analysis – is the whole research about the company functions and their future plans..(like assets,liabilities,manufacturing,earnings, competitors,demand,supply and etc…)
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jagadheesh replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental analysis – is the whole research about the company functions and their future plans..(like assets,liabilities,manufacturing,earnings, competitors,demand,supply and etc…)
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jagadheesh replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Pro’s : 1. Reading charts to spot price trends.
2. Use indicators and oscillators to support what the price movement will telling you
3. Attention to the Demand and Supply with volumes
4. Under standing the Support and Resistance levels.
Con’s : 1. Only suitable for Short term trading
2. Technical Indicators Mixed signals (one indicator wi…[Read more]
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