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Syed.Moiz replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Pros – method by which one can make money with proper knowledge and discipline
cons- losing money due to l;ack of knowledge and irrational decisions.
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Syed.Moiz replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 5 months ago
in future contact both buyer and seller on the same platform of rights and obligations
in an options contract, the buyer has rights with no obligations and seller has obligations but seller receives a premium as an profit-making source.
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Syed.Moiz replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 7 years, 5 months ago
In Future contracts both the buyer and seller sign the contract which is to be settled in the future.
to avoid risk factor both buyer and seller are required to pay the caution deposit.
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Syed.Moiz 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, 5 months ago
MTM =is the mark to market which compares the value of the product between the contract and market price
This is not applicable in the options contract,because the price has already been agreed by both buyer and seller.
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Syed.Moiz 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, 5 months ago
Margin money is nothing but a small amount taken as caution deposit from the buyer and given to the seller as the premium.
in most of the cases, the seller of options contract makes profits through this premium
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Syed.Moiz replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 7 years, 5 months ago
CALL OPTIONS:call option is a call raised be the buyer stating he is ready to make a contract on so and so product with that price.
The buyer has right to buy with no obligations(these contract are mostly in the favour of buyer if the maket value during the contract dated up).
PUT OPTION:put options is used by the seller stating he is ready sell…[Read more]
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Syed.Moiz replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Equity Market is the type where the face values i.e stock price is equal the buyer and can vary its quantity of stock depending on the req.
a trader holding equity shares becomes the owner of the company
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Syed.Moiz replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Spot or Cash market is the type where the settlement is done as soon as the deal is executed by buyer and seller.
The buyer receives the stock and seller receives the cash within the day.
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Syed.Moiz replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Derivative instruments are used in the futures and options trading where the settlement doesn’t happen on the sameday.
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Syed.Moiz replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Exchange is responsible for doing settlement in case of default by buyer or seller,this settlement can be done as cash or stock settlement depending on the contract,and the defaulter is charged with the penalty additionally.
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Syed.Moiz replied to the topic Whether Strike price applicable for Future contract in the forum Stock market questions and answers 7 years, 5 months ago
Strike price the current market price of the stock,but in the case of future trading the price is already decided while signing the contract
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Syed.Moiz replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 7 years, 5 months ago
In future, call options trading the buyer is not required to do the settlement as done in intraday it has many flexibilities depending the contract on which one is trading
for put options it is beneficial for the buyer when the price goes up but if not he loses his premium paid as caution deposit,his premium is a profit for the seller.
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Syed.Moiz 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, 5 months ago
Yes, it is possible to buy the share in BSE and sell in NSE but the company should be registered in both the Exchanges. but this is not possible in intra-day trading.
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Syed.Moiz replied to the topic What is long / short / long unwinding / Short Covering? in the forum Basics of Stock Trading 7 years, 5 months ago
LONG:Buying a stock expecting the value of shares goes up
LONG-UNWINDING:Selling the stock when value of shares has gone up these stock was bought during long position
SHORT:Selling the stock which we don’t own
SHORT-COVERING:Buying the stock which is already while creating short position
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Syed.Moiz replied to the topic Why do people choose stock trading? in the forum Basics of Stock Trading 7 years, 5 months ago
Stock trading is a platform where people can multiply their money in a short period of time it is a place where the flow of trading doesn’t ends as its is an open global market.
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Syed.Moiz replied to the topic How Stock exchanges ensure the traders counter party risk? in the forum Basics of Stock Trading 7 years, 5 months ago
A caution deposit amount is collected from the traders and the broker by the exchange to ensure the counterparty risk while trading apart from this the default trader is required pay the penalty it that case.
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Syed.Moiz replied to the topic How much time required to do trade? in the forum Basics of Stock Trading 7 years, 5 months ago
There is no any requirement of time after the market is open and the buyers and sellers price matches trade happens in seconds
but the settlement of the trade for both the parties happens after the market is closed.
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Syed.Moiz 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, 5 months ago
BROKER- through which the buyers and sellers can trade,the broker takes the order from the traders and makes the order to the exchange
Exchange is responsible for exchanging the cash for stocks or Vice-Versa
SEBI- security exchange body of India is responsible for setting up the norms and regulation for the exchanges like NSE,BSE…[Read more]
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Syed.Moiz 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, 5 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stock trading takes place when the price of the buyers and sellers happens to match or if the buyer is ready to buy the stock of sellers price on the exchange window.</p>
<p style=”box-sizing: border-box; margin:…[Read more] -
Syed.Moiz 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, 5 months ago
when a buyer quotes the higher price than the current market prize then the buyer will appear on top of Market window on the buyer’s column but the trade takes place the price of the seller.
i.e minimum price by the seller —maximum price by the buyer (trade takes place first)
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