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shalini replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
technical analysis is the study of demand and supply in an attempt to determine the markets direction
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shalini 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
data both qualitative and quantitative are required for fundamental analysis of a company stock. for technical analysis, price and volume of the stocks traded are the only input data required.
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shalini 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
fundamental analysis is all about studying a company in detail. the extensive data will not be available to traders.
this analysis is more accurate and for long term investment.
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shalini replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
pros of technical analysis
the input required are only price and volume.
technical analysis results cannot be applied for long term investment.
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shalini replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
Fundamental analysis is studying a company in detail.this is done for long term.
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shalini replied to the topic What is the Pro / Cons of Equity market from tradersā perspective? in the forum Essentials of Trading Instruments 8 years, 8 months ago
In equity market, you have to pay upfront to buy shares so the investment is high.you cannot take advantage of the fluctuations in the stock price to make money which you can do in the case of derivatives.
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shalini replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Call option is an option to buy where the buyer of the option has the right to buy at the agreed strike price and before the expiry of the option contract but he is not obligated to do so.
Put option is an option to sell where the buyer of the put option has the right to sell the stock at the agreed strike price before the expiry of the option…[Read more]
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shalini replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Margin is the refundable deposit that a buyer and a seller have to pay to the exchange for entering into a futures contract.
Whenever there Ā is a change in the futures price from the pre agreed price, the difference is settled on a daily basis by the exchange. This settlement of daily profit or loss is done by the exchange with the margin money…[Read more]
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shalini replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Margin is the refundable deposit that a buyer and a seller have to pay to the exchange for entering into a futures contract.
Whenever there Ā is a change in the futures price from the pre agreed price, the difference is settled on a daily basis by the exchange. This settlement of daily profit or loss is done by the exchange with the margin money…[Read more]
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shalini replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Futures exchange acts as an intermediary Ā to minimise the risk of default by either party. Both the buyer and the seller have to deposit a certain amount called the margin money with the exchange before entering a futures contract. The exchange uses this margin money from either party to settle daily profit or loss called mark to market.
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shalini replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Spot/cash market is also known as equity market where trading and settlement happens on the same day.
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shalini replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 8 months ago
In futures/ call/ put, the trader can enjoy benefits without actually having to hold on to the stock until expiry. His investment is less compared to equity. Ā And because these are traded on a secure and monitored exchange platform the traders credit risk is also reduced.
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shalini replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Equity market also know as spot market is where you purchase the stock by paying upfront.
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shalini replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 8 months ago
A futures contract is a legally binding agreement between a buyer to buy and a seller to sell a particular quantity of a particular stock at a now agreed price. But the delivery and payment will be Ā at a agreed future date.
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shalini replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 8 months ago
Derivative instruments are financial instruments that derive their value entirely from the asset it represents like either equity, currency ,commodity etc.
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shalini replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 8 months ago
In futures contract, the buyer and the seller both are obligated to complete the contract at the end of the contract period. Both the buyer and seller have to pay margin money to the exchange.
In options contract, the buyer of the contract has the right to buy the asset from the seller but has no obligation. The seller of the contract is…[Read more]
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shalini replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 8 years, 8 months ago
stock exchanges ensure the traders counter party risk with brokers caution deposit.
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shalini replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 8 years, 8 months ago
long position is when you buy stocks for the first time with the intention of selling them later for a profit. short position is when you capitalise on the downward trend of a particular stock by selling the Ā stocks you dont own but buy them before settlement time.
selling the stocks bought in long position is long unwinding. buying the stocks…[Read more]
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EQSIS and shalini are now friends 8 years, 8 months ago
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shalini 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, 8 months ago
my order will be on top in the buyers queue. my order will be executed when my price matches with the one in the sellers queue. if my buying price is still high and does not exactly match the selling price, then my order is executed by matching with the best current market price.
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