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Sorna Rajeswari replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 7 months ago
If we hold equity share of a particular company then we become a share holder and has rights on the assets and dividend.
the only disadvantage is investing full amount of money for trading a particular share.
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Sorna Rajeswari replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Derivatives is a contract between two parties which value is derived from underlying assets.
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Sorna Rajeswari replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 7 months ago
In option contract the buyer has the rights to buy or sell but doesn’t have any obligations.
In future contract both the buyer and seller has the rights and obligations.
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Sorna Rajeswari replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Day to day price fluctuation are calculated by the exchange and settled down on day to day basis.
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Sorna Rajeswari replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 7 months ago
In all the three cases we are not investing all our money instead we pay only a premium or caution deposit to the exchange.
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Sorna Rajeswari replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Margin-The word margin is nothing but caution deposit given to the exchange by both the buyer and seller.
MTM -Mark to the Market –Both buyer and seller has to realize the profit and loss on day to day basis.
Premium-Money given to the seller to sign the contract.
Strike Price -its nothing but the last traded price.
Expirty Date – Maturity dat…[Read more]
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Sorna Rajeswari replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 7 months ago
In both the cases the buyer has the rights but do not have any obligations.Premium is decided by the buyer of the put option to sign the contract.
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Sorna Rajeswari replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Future contract it comes under derivative market. in future market both buyers and sellers gets into a deal but the settlements will be done based on the date in the contract.
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Sorna Rajeswari replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Equity market is nothing but a stock market. The word equity means unit of ownership in a company.
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Sorna Rajeswari replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Spot/Cash market is nothing but the settlement has to be done before the market closing time.
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Sorna Rajeswari replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 7 months ago
the trade gets executed once the buyers and sellers target reached.
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Sorna Rajeswari replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 7 months ago
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Trade plan is nothing but the ability to derive the risk and reward. by understanding that we can either buy or sell the shares with huge profit.
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Sorna Rajeswari replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 7 months ago
Positional trading-Holding a stock for a period based on the contract.
Intraday trading-buying and selling the stocks in the same day.
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Sorna Rajeswari replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 7 months ago
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Exchange is responsible for all the trades.
If a buyer doesn’t get his shares till end of the day the exchange will get from auction market and settle to buyer and the amount is deducted as caution deposit from the broker.
If a seller doesn’t get the payment for his shares till the end of the day the exchange…[Read more]
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Sorna Rajeswari replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 7 months ago
Buying and selling the stocks via online is online trading.
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Sorna Rajeswari replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 7 months ago
Trading-Buying and selling the shares.
Analysis-Studying the market.
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Sorna Rajeswari replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 7 months ago
People choose stock trading to earn money.If we trade with knowledge and discipline we can make money out of it.
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Sorna Rajeswari replied to the topic How to place order? Types of order? Validity of order? in the forum Basics of Stock Trading 7 years, 7 months ago
we have to place the order through a registered broker.
Buying and selling are the two types of order.
Validity of the order expires on the same day for intraday trading.whereas for futures and options the expiry date is based on the contract signed.
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Sorna Rajeswari 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, 7 months ago
Yes it is possible to buy the stocks from BSE and sell it on NSE, we have to ensure whether the stock is listed in both the exchanges.
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Sorna Rajeswari 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, 7 months ago
If we quote a high price to buy a stock compared to the current market price the trade will be executed only to the current market price and not as per the highly quoted price.
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