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SHREYANS BOTHRA replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 6 years, 12 months ago
Stock price is derived from the demand and supply of the particular share.
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SHREYANS BOTHRA 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 6 years, 12 months ago
Average turnover is 3-5 lakh crore. It is highly difficult to manipulate the stock price has everything is in electronic form.
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SHREYANS BOTHRA replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 6 years, 12 months ago
Analysis is needed to derive the market trend. By analysis, we can get an virtual idea of demand and supply.
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SHREYANS BOTHRA replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years ago
In option contract, the buyer has the rights to buy or sell the shares without obligation whereas in future contracts, the buyer or seller has the rights to buy or sell shares with obligation.
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SHREYANS BOTHRA replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years ago
margin is the caution deposit deposited by both the buyer and seller to the exchange
MTM is mark to market which means settling the gains and losses on every day closing price basis.
Premium is the amount paid to the seller to sign the contract.
Strike price is mutually agreed price to settle in the future date.
Expiry date is the last…[Read more]
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SHREYANS BOTHRA replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years ago
In Call option, the person has the rights to buy the equity without obligation. That means he will use the contract only if it is favourable to him. The person who has rights to buy is called as call option buyer and other person is call option is known as call option seller.
In Put Option, the person has the rights to sell the product without…[Read more]
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SHREYANS BOTHRA replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years ago
The place where company shares can be bought and sold is known as equity market. Shares are transferred from person to another at a agreed price.
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SHREYANS BOTHRA replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years ago
Exchange monitors the role of both the counter party. They take a caution deposit from both the parties and settles each account on each day such that buyer and seller dont turn off on the settlement date. They minimise the risk of fraud and ensure the contract takes place on the settlement date.
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SHREYANS BOTHRA replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years ago
Both spot market and cash market are same. Deal is done instantly and its settled on the same day. Its cash and carry business.
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SHREYANS BOTHRA replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years ago
Trader needs futures, call and put to minimise the risk and can earn money with the changing price. He wants to do the business peacefully without the headache of price fluctuations.
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SHREYANS BOTHRA replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years ago
Future contracts are the contracts agreed by the buyer and seller to buy and sell the product on the future date at decided price. This is done to minimise the risk of price fluctuation. Cash settlement is made on the settlement date.
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SHREYANS BOTHRA 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 ago
Your order will be placed with exchange but it will be executed only if the prices matches.
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SHREYANS BOTHRA replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years ago
Trade happens on the spot if the price matches.
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SHREYANS BOTHRA replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years ago
When a person analysis the stock price to go up, he creates long position by placing bur order. When the target is reached, he creates a position of long unwinding by placing sell order.
When a person analysis the stock price to go down, he creates a short position by placing sell order. A one sell shares even if he doesn’t have shares in his…[Read more]
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SHREYANS BOTHRA 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 ago
If the company is listed in both BSE and NSE, it is possible to buy shares in BSE and sell in NSE. But this is not applicable to Intraday trading. Intraday Trading has to be processed with the same broker and exchange.
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SHREYANS BOTHRA replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years ago
A one can buy and sell shares sitting at home using mobiles and desktop. by opening a demat and trading account account with the exchanges. It is electronic form of buying and selling of shares.
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SHREYANS BOTHRA replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years ago
Trade plan is the process by which we conclude which particular share to deal in, whether to buy or sell the share and calculation the risk reward ratio.
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SHREYANS BOTHRA replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years ago
Stock Exchanges settles the amount with counter parts caution deposit.
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SHREYANS BOTHRA replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years ago
To make money with fluctuating market price.
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SHREYANS BOTHRA replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years ago
We can place order through a broker. There are two types of order:
1. Buy Order and
2. Sell Order.
Validity of the order is only a day. If the order is not executed, buyer and seller have to place a fresh order next day.
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