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swaroopa replied to the topic Whether Strike price applicable for Future contract in the forum Stock market questions and answers 7 years, 7 months ago
Yes it is applicable for future contract
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swaroopa replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 7 months ago
For Buyer, get rights to buy with obligations for seller, get right to sell with obligation with future date.
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swaroopa 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 is applicable only in future contract. It is the initial payment done buy the buyer and seller as a caution deposit.
MTM means Mark to Market. It is the process of valuing the stocks on a day to day basis and settling the difference in price to the respective person (buyer or seller).
Premium is the amount of money received by the seller…[Read more]
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swaroopa 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
Pros of Equity market:
The sound knowledge of trading ends with high rewards with less risk.
Cons of Equity Market:
People are been attached so emotionally towards the outcome of a deal. It is not necessary all deal needs to be a success.
5% of the total people who trade are able to succeed in this market and makes profit.
95% people bound to…[Read more]
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swaroopa replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 7 months ago
The spot/cash market is nothing but the market where we buy the stocks and pay immediately is called spot/cash market. it doesnt have the contract between the traders.
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swaroopa replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 7 months ago
A stock / securities represents the ownership of the interest in called equity. the equity market is nothing but the place where buyers and sellers meet to buy/sell the stock /securities.
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swaroopa replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 7 months ago
Future Contract: For buyer, get rights to buy with obligations, for seller get right to sell with obligations with future date.
Option contract: The buyer have rights to buy the share to the strike amount. if the price rises, buyer can buy only to the strike amount.
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swaroopa 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
Terms of Call Option: Buyers of the contract has the RIGHTS TO BUY the asset from the seller of this contract.
Terms of PUT Option: Buyers of the contract has the RIGHTS TO SELL the asset from the seller of this contract.
both buyer and seller decides the premium and it depends upon the expiry date
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swaroopa 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
The role of exchange is to balance the market price and maintain the agreed price of the buyers and sellers.
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swaroopa replied to the topic Whether Margin money is mandatory for both buyers & sellers of Option Contract in the forum Stock market questions and answers 7 years, 7 months ago
Yes, both buyer and seller need to pay the margin money.
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swaroopa 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
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in spot market a trader should pay the settlement within a day .but in futures and option settlement will be in a month / date mentioned in the agreement
in spot market creating short term is risky
but in futures and options creating short term has less risk
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swaroopa replied to the topic Is MTM is applicable for Options contract if Strike price is reached? in the forum Stock market questions and answers 7 years, 7 months ago
No MTM is not applicable for options contract if strike price is reached.
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swaroopa replied to the topic Is Stock trading is gambling or Business? How? in the forum Basics of Stock Trading 7 years, 7 months ago
with knowledge and discipline we trade in market is business. it reduces the risk and earns money.
without knowledge and discipline if we trade in market is Gambling. It increases the risk than what we reward.
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swaroopa replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 7 months ago
Long Position: buying the shares and holding for a long time and sells the shares whenever price comes up.
Short Position: selling the shares that we r not holding at present, and buys the same when price goes down on same day.
Long unwinding: Existing the long position by selling the shares which we hold.
Short covering: Existing the short…[Read more]
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swaroopa 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 is the execution of the analysis of the stock.
Analysis is the study of that particular stock in the market.
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swaroopa 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
Order can by placed by online or phone to a broker.
Types of Order : Buy order and sell order
Validity of order : 1. Intra day: buy and sell the stock on same day
2. future / option : the buying and selling of stock take place on the expiry day.
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swaroopa replied to the topic when does stock trading becomes gambling ? in the forum Stock market questions and answers 7 years, 7 months ago
when a person taking the rational behaviour without knowledge and discipline of the market, than he is taking a more risk than reward. so its called Gambling
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swaroopa replied to the topic What is online trading? in the forum Basics of Stock Trading 7 years, 7 months ago
buying and selling stocks in online
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swaroopa 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 the buyer is mentioned the higher price of the stock, than he will be the best buyer and keeps in priority position of buyers queue. and trading happens whenever the price is matched to the seller.
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swaroopa replied to the topic What is positional trading and Intraday trading? in the forum Basics of Stock Trading 7 years, 7 months ago
Position trading is nothing but the holding shares and sell according the position of the market.
Where as Intraday can buy and sell shares within a day (between 9.00AM to 3.15 PM)
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