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Rajkumar replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 6 months ago
Reason to avoid is basically because of low volume and less negotiated price
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Rajkumar replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Exchange plays a same role as in case of equity market, a facilitator of trade and control over defaults
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Rajkumar replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 6 months ago
A derivative is a financial instrument with a price derived from the underlying assets
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Rajkumar replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Spot / cash market is where trade happens on the spot or same day but settlement will be done in T+2 days
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Rajkumar replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Call Option – Buyer has the right to buy but has no obligations. Premium amount is decided by the seller of the option
Put Option – Buyer has the right to sell but has no obligations. Premium amount is decided by the seller of the option
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Rajkumar replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Futures contract is a financial instrument which is traded at a predetermined price at a specified time period
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Rajkumar replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Futures has Right and Obligation to buy/sell contracts but options has only right and no obligation
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Rajkumar replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Margin – Initial deposit made by investors to enter futures or options contract
MTM -Mark to Market is a method of valuing position and determining profit or loss
Premium – is the amount paid to buy future/Options contracts
Strike Price – It is a price above which buyer of call option and below which seller of call option can claim their…[Read more]
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Rajkumar replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Equity market is where equity shares are traded
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Rajkumar replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 6 months ago
Pros – Opportunity to make money but has huge risk
Cons – Only 5% do it successfully, so being one in 5% needs lot of effort and dedication
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Rajkumar replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 6 months ago
Positional Trading – Buy a stock and holding it more than a day
Intraday – buy and sell a stock or vice versa within a day
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Rajkumar replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 6 months ago
We can place order with your broker by mentioning the stock name, ask or bid Price, quantity, stop loss and name of the exchange over a phone. Otherwise you do it online using brokers portal or software
Types – Long, long unwinding, short and short cover
Validity – between 9.15am to 3.30pm on any given day
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Rajkumar replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 6 months ago
If Trading with knowledge (Identifying risk vs reward) and taking rational decision then it is business else it is gambling
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Rajkumar and
NARENTHIRAN are now friends 7 years, 6 months ago
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Rajkumar replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 6 months ago
Trading is buying and selling of share but analysis tells you what and when to buy or sell share.
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Rajkumar replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 6 months ago
Stock price is decided by market players based on demand and supply
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Rajkumar 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, 6 months ago
Trade will be executed based on ask prices available below the bid price up to the quantity ordered
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Rajkumar replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 6 months ago
Buying and Selling of shares in a PC using internet and broker software
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Rajkumar 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, 6 months ago
Broker – is a intermediary between exchange and investor in helping stock trading
Exchange – is a mechanism that control and facilitate stock trading
SEBI – is a regulatory board that promotes and protects investors interest
Govt – is a system by which a state or community controlled
Bank – is a financial institution that handles money…[Read more]
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Rajkumar replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 6 months ago
It depends on your ability to analysis and place the order faster. It can be done during anytime of a day between 9.15am to 3.30pm
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