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S P Sree Rakshaa replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Margin – the caution deposit that is to be paid.
MTM – market to market price done on day to day basis.
Premium – Paid by the buyer to the seller
Strike Price – Price at which the deal happens
Expiry date – Contract execution date
Lot Size – The bulk amount of stocks bought.
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S P Sree Rakshaa replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Futures/call/put options doesn’t need a lot of money just a cautionary deposit whereas equity market deals with cash in real time.
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S P Sree Rakshaa replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Call Option – Buyer gets the rights to buy with no obligations.
Put Option – Buyer gets the rights to sell with no obligations.
Buyer decides the premium to be paid by the seller.
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S P Sree Rakshaa replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Exchanges are the important medium through which the Futures/Options contract take place. They take care of the proper fulfilment of the contract. Example : Collection of caution deposit from both buyer and the seller.
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S P Sree Rakshaa replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Spot/Cash market is where the settlement is made on the same day.
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S P Sree Rakshaa replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Equity market is a spot market where the settlement is made on the spot (same day).
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S P Sree Rakshaa replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 9 months ago
In Futures contract, the deal is settled on a later date and the risk involved is quite high.
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S P Sree Rakshaa replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 9 months ago
In option contract, the buyer has rights and no obligation.
Buyer gives premium.
The seller takes the risk involved.
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S P Sree Rakshaa replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 9 months ago
A derivative is an instrument that is used for deriving the value of stocks commodities, etc. Futures and Options are the examples.
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S P Sree Rakshaa replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 9 months ago
Pros – Higher returns and good for short term investments
cons – Highly volatile and can go up or down anytime
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S P Sree Rakshaa and surya are now friends 7 years, 9 months ago
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S P Sree Rakshaa replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 9 months ago
Positional Trading – Trading happens over a duration of time, more than a day.
Intraday Trading – Trading happens in a single day during the working hours of the market.
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S P Sree Rakshaa replied to the topic What is the difference between primary market and secondary market? in the forum Basics of Stock Market 7 years, 9 months ago
Primary Market is where companies come for an “Initial Public Offering”. It is where the shares of the company are sold to the public for the first time.
Secondary Market is where the buying and selling happens with the already public corporations.
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S P Sree Rakshaa replied to the topic Who are share holder, promoter, and director? What is the role and rights of them? in the forum Basics of Stock Market 7 years, 9 months ago
Share Holder – Is a person who owns shares of the company ad has the rights to sell those shares.
Promoter- Is a person who promotes the business and they cannot make profits at the expense of the company.
Director – Is a person who is involved in the betterment and the running of the company, they are ones who decide on when and how to give…[Read more]
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S P Sree Rakshaa replied to the topic What is the difference between Investments and trading? in the forum Basics of Stock Market 7 years, 9 months ago
Investment and Trading are 2 different things and it is often used interchangeably. They are different methods in attempting to achieve a profit in a financial market.
The primary aim of an investment is to gradually build your wealth over a period of time, usually more than 2-3 years.
Trading is where you buy and sell shares within few months…[Read more]
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S P Sree Rakshaa replied to the topic Can share holder has right to ask for refund / can he ask for dividends? in the forum Basics of Stock Market 7 years, 9 months ago
No, in both the cases, the shareholder cannot ask for a refund and also for the dividend though he can receive a dividend with the decision taken by the company management.
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S P Sree Rakshaa replied to the topic What is IPO? What is the process of applying for IPO? in the forum Basics of Stock Market 7 years, 9 months ago
IPO – Initial Public Offering
Companies can raise equity Capital with the help of an IPO through advertisements. They can issue new shares to the public or the existing shareholders can sell their shares to the public. SEBI helps through the process of raising an public offering. It is a Primary Market.
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S P Sree Rakshaa replied to the topic What are the other markets? in the forum Basics of Stock Market 7 years, 9 months ago
Market is a place where buying and selling happens.
The different markets in India are:
1. Spot Market
2. Futures Market
3. Option Market
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S P Sree Rakshaa replied to the topic How come NSE become popular than BSE? in the forum Basics of Stock Market 7 years, 9 months ago
Though BSE is much older than NSE, National Stock Exchange became much more active because of the Futures and Options.
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S P Sree Rakshaa replied to the topic What is Stock Market? in the forum Basics of Stock Market 7 years, 9 months ago
Stock Market is IDENTITY that is created to uniquely identify a common place to buy and sell shares. It basically connects people.
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