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Sandhya R replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Call prices is an right to buy the share at given strike price.
Put option is an right to sell the share at strike price.
Market will decide the premium.
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Sandhya R replied to the topic Is MTM is applicable for Options contract if Strike price is reached? in the forum Stock market questions and answers 7 years, 5 months ago
MTM is applicable only for future market
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Sandhya R replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 5 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 right…[Read more]
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Sandhya R replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 5 months ago
In future contract both buyer and seller have rights and obligation.
In option contract the buyer get the right to buy but no obligation but seller has no rights and they have obligation.
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Sandhya R replied to the topic Whether Margin money is mandatory for both buyers & sellers of Option Contract in the forum Stock market questions and answers 7 years, 5 months ago
Yes for both buyers and sellers it is necessary.
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Sandhya R replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 5 months ago
The market time is between 9:15 Am to 3:30 Pm, The trading time is purely depends on the individuals.
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Sandhya R replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Buying or selling the shares online is called online trading.
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Sandhya R replied to the topic when does stock trading becomes gambling ? in the forum Stock market questions and answers 7 years, 5 months ago
Trading without analyzing the market became gambling.
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Sandhya R replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 5 months ago
Trading refers only the buying and selling the shares of the company.
Analysis is how traders are analyzing the market before going for trade by now the risk and return over demand and supply.
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Sandhya R 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, 5 months ago
Stock trading takes place in stock exchange where we can buy and sell the trades.
Brokers – Brokers are the intermediate between traders and exchange, Traders can not buy or sell shares directly through exchange.
Exchange – Through exchange we can buy and sell the trades, it listed out all the companies. Exchange is an responsible to do the…[Read more]
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Sandhya R replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 5 months ago
Long – Process of buying the share.
Short – selling the share which we are not hold but planned to buy the share before settlement .
Long unwinding- selling the share which we bought.
Short covering- Buying the share to end the short position.
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Sandhya R 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, 5 months ago
If we quote for high price compared to current market price then you will stand first in the ask price.
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Sandhya R replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 5 months ago
Trade plan is very important before we start doing the trade, Follow the market to avoid risk and plan to get the good returns.
It is very essential to avoid loss.
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Sandhya R 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, 5 months ago
Yes we can buy stocks from BSE and sell it on NSE but we should have stocks in the demat account.
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Sandhya R replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 5 months ago
To make money with low investment the people are choosing the stock trading.
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Sandhya R replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 5 months ago
Trading the stock with knowledge (Identify the risk and return) and discipline (Taking rational decision) is business.
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Sandhya R replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 5 months ago
The buyers and sellers decide the stock price.
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Sandhya R replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 5 months ago
Place order can be done through online in the software provided by broker or through stock broker.
Buy order, Sell order, Long, Long unwind, Short, Short covering, Call option, put option, Future order are the types of order.
The timings to place the order as per the indian market at 9:15 Am to 3:30Pm.
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Sandhya R replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 5 months ago
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stock exchange collects sufficient funds from registered brokers through which they ensure the settlements are done to avoid counter party risk.</span>
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Sandhya R replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Positional trading is holding a shares for a week or month.
Intraday trading where we should buy or sell the shares on the same day.
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