Top 5 stock brokers in India with the largest client bases at the beginning of 2023

Zerodha leads the pack, with 6.5 million active client accounts, 65 lakhs. Groww in second position with accelerated growth, with 5.2 million active client accounts, 52 lakhs. Angel One with 4.2 million active client accounts, 42 lakhs. Upstox with 3.4 million client accounts, 34 lakhs. (Upstox, the broker who has paid this website the most towards Read more about Top 5 stock brokers in India with the largest client bases at the beginning of 2023[…]

What is ASM (additional surveillance measure)  in the stock market, and why is it implemented on certain stocks?

Additional Surveillance Measures” (ASMs) are a set of rules and procedures implemented by stock exchanges to monitor and regulate the trading activity of certain stocks. The goal of ASMs is to prevent market manipulation, fraud, and other forms of market abuse, and to ensure the fair and efficient functioning of the stock market. ASMs are Read more about What is ASM (additional surveillance measure)  in the stock market, and why is it implemented on certain stocks?[…]

What is the meaning of “free float” in the stock market and How to check the free-float market capitalization of a listed Indian company?

“Free float” refers to the portion of a company’s outstanding shares that are available for trading in the stock market. It is calculated by subtracting the number of restricted shares, such as those held by company insiders or subject to lock-up agreements, from the total number of outstanding shares. The term free float is sometimes Read more about What is the meaning of “free float” in the stock market and How to check the free-float market capitalization of a listed Indian company?[…]

What is MSCI, and why are MSCI indices important?

MSCI (Morgan Stanley Capital International) is a leading provider of investment decision support tools and services. It is best known for its stock market indices, which are widely used as benchmarks for international equity portfolios. MSCI indices are important because they provide a benchmark for measuring the performance of investments in different markets. For example, Read more about What is MSCI, and why are MSCI indices important?[…]

How often do companies pay out dividends, and how can I check if a company has declared dividends?

Dividends are payments made by a company to its shareholders, usually out of its profits. The frequency of dividends being paid varies depending on the company and its policy. Some companies pay dividends on a quarterly basis, while others may pay dividends semi-annually or annually. Some companies may also choose to pay dividends sporadically or Read more about How often do companies pay out dividends, and how can I check if a company has declared dividends?[…]

What are the ideal market profile block sizes for Nifty and bank nifty futures contract?

In a market profile chart, the block size refers to the vertical height of a single price level in the chart. The ideal market profile block size for any contract is subjective and depends on the preference of the trader. There is no fixed or standard block size for Nifty or Bank Nifty futures, as Read more about What are the ideal market profile block sizes for Nifty and bank nifty futures contract?[…]

The buyer sweeps the limit orders, and the seller sweeps the limit orders. What is the difference?

In the context of stock trading, “sweeping the limit orders” refers to the process of executing a large number of buy or sell orders at a specific price level, effectively “clearing out” the limit orders that are resting at that level. Buyer Sweeps the Limit Orders:When a buyer “sweeps” the limit orders, it means they Read more about The buyer sweeps the limit orders, and the seller sweeps the limit orders. What is the difference?[…]

What is the concept of “smart money” in stock markets, and why is it relevant?

The concept of “smart money” refers to the idea that there are certain market participants who have access to superior information and resources, and therefore have an edge over the general public when it comes to making investment decisions. These market participants are thought to include professional traders, hedge funds, and institutional investors. They are Read more about What is the concept of “smart money” in stock markets, and why is it relevant?[…]

When the put option premium is low and the call option premium is high, what does it imply?

A low put option premium and a high call option premium can indicate a bullish market sentiment. In options trading, a put option gives the buyer the right, but not the obligation, to sell an underlying asset at a predetermined price (strike price). The price of a put option is known as the put option Read more about When the put option premium is low and the call option premium is high, what does it imply?[…]

What is a FPO and how is it different from an IPO?

FPO stands for Follow-on Public Offer, which is another term for a secondary offering. It refers to a situation where a company that is already publicly traded issues additional shares of stock to the public. An IPO, or Initial Public Offer, is the process by which a privately held company raises capital by issuing and Read more about What is a FPO and how is it different from an IPO?[…]

What sectors will the financial budgets of the future be focused on?

These are certain sectors that are likely to continue to be a focus in the future due to their importance to the economy and society. Infrastructure: This sector includes transportation, water, and energy infrastructure, and it is likely to be a focus in the future as governments look to improve and upgrade these systems to Read more about What sectors will the financial budgets of the future be focused on?[…]

Why is a positive price candle typically green and a negative price candle red?

The color of a price candle on a stock chart is used to represent whether the closing price of a security is higher or lower than its opening price. A positive price candle is typically represented in green and a negative price candle is typically represented in red. The reason for this color convention is Read more about Why is a positive price candle typically green and a negative price candle red?[…]

What is T+1 settlement cycle for stocks?

T+1 stock settlement refers to the process of settling a stock trade one day after the trade date. In other words, T+1 settlement means that when a trade is executed on Monday, it will be settled on Tuesday. From 27th January 2023 onwards, this is the new standard settlement cycle for all stock trades in Read more about What is T+1 settlement cycle for stocks?[…]

Open interest explained, and what does the relationship between open interest and the price of a futures contract indicate?

Open interest is the total number of outstanding futures contracts (i.e. contracts that have been entered into but not yet liquidated by an offsetting transaction or fulfilled by delivery) for a particular market or commodity. It can be used as an indicator of market activity, as an increase in open interest suggests that new positions Read more about Open interest explained, and what does the relationship between open interest and the price of a futures contract indicate?[…]

Liquidity eats liquidity; what does this phrase mean in financial markets?

“Liquidity eats liquidity” is a phrase that is often used to describe the way that liquidity can be both created and destroyed in financial markets. The idea behind the phrase is that when there is a high level of liquidity in the market (or in a specific instrument, for example, nifty) , it can attract Read more about Liquidity eats liquidity; what does this phrase mean in financial markets?[…]

How are standard deviation and probability related?

Standard deviation and probability are related in that they are both used to measure and quantify uncertainty or randomness. Standard deviation is a measure of volatility, which is used to quantify the amount of variation or dispersion in a set of data. It tells us how much the individual data points in a set deviate Read more about How are standard deviation and probability related?[…]

What is the “fear of missing out” syndrome in intraday trading, and why traders need to be aware of it?

The “fear of missing out” (FOMO) syndrome is a phenomenon that occurs in intraday trading, where traders feel a sense of anxiety or urgency about missing out on potential profits from a trade. This fear can be triggered by market conditions, such as a rapidly rising market, or by the actions of other traders, such Read more about What is the “fear of missing out” syndrome in intraday trading, and why traders need to be aware of it?[…]

How do stock markets react to hawkish and dovish monetary policies?

Stock markets typically react differently to hawkish and dovish monetary policies. When a central bank adopts a hawkish monetary policy, by raising interest rates or taking other measures to tighten monetary policy, it can lead to a decrease in stock prices. Higher interest rates make borrowing more expensive, which can lead to a decrease in Read more about How do stock markets react to hawkish and dovish monetary policies?[…]