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srinivash c g and Saravanavel Natarajan are now friends 7 years ago
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Saravanavel Natarajan replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 2 months ago
Fundamental analysis is focused on company so it requires internal and external factor of the company like future projects, management change details, company policy details etc.
Technical analysis is focused on market, so it requires information on price and volume transaction happened in order to get demand and supply zone of market.
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Saravanavel Natarajan replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 2 months ago
Company performance and future earning expectations drives the stock price, based on this the supply and demand changes so often which in turn changes the prices so often.
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Saravanavel Natarajan replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 2 months ago
Analysis gives us the basic knowledge to trade their by we can remain in profit zone considering our whole trade.
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Saravanavel Natarajan replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 2 months ago
MARGIN : it is the caution deposit given to the exchange, so that buyer/seller dont default at the end of the day trade.
MTM:Ā The profit and loss is realized on day to day basis based on price variation as Marked To Market by the exchange.
PREMIUM :Money given to seller for signing the options contract, becaz seller is benefited only through…[Read more]
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Saravanavel Natarajan replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 2 months ago
The Exchange settles the obligations arising in the market on MTM basis.
When any disputes occur between buyer ad seller it settles the disputes through the caution deposit and premium collected through futures & options contract respectively.
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Saravanavel Natarajan replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 2 months ago
In Equity the income cannotĀ be realized on day to day basis, but in future it can be.
In Equity we invest 100% of share prices whereas in future & options we need to pay only the caution deposit and premium respectively.
U cannot trade short positions for long periods in equity but same can be traded in derivatives.
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Saravanavel Natarajan replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 2 months ago
In option contract only the seller has obligations and the buyer has no obligations.
In future contract both the buyer and seller are equally obligated on marked to market basis.
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Saravanavel Natarajan replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 2 months ago
The buyer gets the right to buy and has no obligations is call option, here the seller has obligations but has no rights.
The buyer getting right to sell with no obligations is put option, here the seller has obligations but has no rights.
In both the cases, sellers decide the premium for buyers as its the only profit the seller gets.
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Saravanavel Natarajan replied to the topic What is the Pro / Cons of Equity market from tradersā perspective? in the forum Essentials of Trading Instruments 8 years, 2 months ago
Pros :Ā when u own the stock , u become one of the owner of the company, u are at complete freedom to buy or sell the stocks
Purely freelance and everything depends on your decision, knowledge and discipline.
Good andĀ legal source of income when traded professionally.
Cons :Ā when u are not rational and let loose your discipline, loss of mo…[Read more]
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Saravanavel Natarajan replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 2 months ago
Futures and options (call option and put option) are derivative instruments.
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Saravanavel Natarajan replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 2 months ago
Its a contract of agreement between buyer and seller on a pre determined price of a commodity or financial instrument for future trade.
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Saravanavel Natarajan replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 2 months ago
Spot/Cash market are the market where the securities are sold and delivered immediately on the same day.
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Saravanavel Natarajan replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 2 months ago
Equity market and stock market is one and the same where the retail investors (buyers and sellers ) meet to exchange their equities for the benefit of making profit.
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Saravanavel Natarajan replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 8 years, 2 months ago
Trade plan is nothing but deciding when to buy and when to sell the stocks before starting to trade, It is essential to determine the profit and stop loss.
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Saravanavel Natarajan replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 8 years, 2 months ago
when the price of buyer and seller matches then trade happens in fraction of second provided its between 0900hrs to 1530 hrs.
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Saravanavel Natarajan replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years, 2 months ago
Long position means, when the share price goes up I buy the share with expectation ofĀ sell it for higher price later.
Short position means I sell the share when the price falls down with expectation of buying the same share for less price later.
Long unwinding means Selling the long position shares which we have already.
Short uncovering…[Read more]
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Saravanavel Natarajan 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, 2 months ago
yes, it is possible only with long position stand, for this to happen both NSE AND BSEĀ should have the listed company in them.
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Saravanavel Natarajan 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 8 years, 2 months ago
Trading of that particular share will be executed immediately with the highest quoted seller price in the queue.
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Saravanavel Natarajan replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 8 years, 2 months ago
Trading means process of buying or selling stocks.
Analysis means process of focusing on company or stock market, thereby theĀ supply zone, demand zone and expected price movements are calculated.
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