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shrividya replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 7 years, 8 months ago
margin is the caution deposit given to the exchanges to avoid the problem of settlement on day to day basics.
MTM stands for mark to market to realize the profit and loss on day to day basics.
premium is the small amount paid to the seller during this contract.
strick price is the price the deal happens.
expiry date is the execution of the c…[Read more]
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shrividya replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 8 months ago
call option: buyer has the rights to buy with no obligations.
put option buyer has the rights to sell with no obligations.
premium is decided by the buyer and seller of the contract
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shrividya replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 8 months ago
In future contract there is a obligations on buyers and sellers.
In options contract ,the buyer has the rights and no obligations to execute the contract.
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shrividya replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 8 months ago
The instrument is used to derive the value of commodites ,shares ,price.futures and call options are the examples of derivative instruments.
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shrividya replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Exchange play a role in derivative market where exchange will do the settlement for future contract on MTM basics and options contract on expiry date.
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shrividya replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 8 months ago
spot market/cash market is also called equity market where settlement for the trading is done on the same day.
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shrividya replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 8 months ago
future contract which came under derivative market.where buyers and sellers have the rights to sell and buy with obligations.settlement is done at the end of the contract.
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shrividya replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 8 months ago
equity market is also called stock market in which the equal shares are traded.
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shrividya replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 8 months ago
Traders need futures/call/put options to earn money with or without investment.
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shrividya replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 8 months ago
pros:shares can be hold for long period of time,high returns.
cons:market is volatile so there is no guarantee when the price will go up or down.short position is done on intraday trading.
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shrividya replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 8 months ago
stock exchanges collect the caution deposit from the broker in order to solve the counter party risk.
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shrividya 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, 8 months ago
In stock market where buy and sell take place in exchanges via brokers.broker act as a intermediator between shareholders and SEBI. SEBI controls the activity of trading,where buying and selling is taken through demat account,bank enable for transaction money and settlement process.
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shrividya replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 8 months ago
Trading time depends on buyers and sellers satisfied with the price.
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shrividya replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 8 months ago
online trading means buying and selling the shares by using internet.
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shrividya replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 8 months ago
people choose stock trading is to make money with or without investments.
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shrividya replied to the topic What is the difference between Trading and Analysis? in the forum Basics of Stock Trading 7 years, 8 months ago
Trading means buying and selling the shares.
Analysis is to analyze the market movement and take the rational decisions.
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shrividya replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 8 months ago
In positional trading we can hold the stocks for long period of time.
In intraday trading we have to buy and sell the stocks within the single day.
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shrividya replied to the topic Who decide the stock price? in the forum Basics of Stock Trading 7 years, 8 months ago
stock price is decided by buyers and sellers of the stock market
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shrividya 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, 8 months ago
if we quote high price to buy the stocks then buyers stands on the top of buyers queue then the stocks trade with best selling price
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shrividya replied to the topic What is Trade Plan? Why it is essential in the forum Basics of Stock Trading 7 years, 8 months ago
Trade plan is for identifying the risk,reward,when to entry and exit,to know the stoplossl.
trade plan is essential to make profit without loss.
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