Delivery trading is a type of trading in the stock market where investors buy and sell stocks with the intention of taking physical delivery of the stocks they have purchased. In this type of trading, the stocks are held for a longer period of time, usually ranging from a few weeks to several months or Read more about What is delivery trading?[…]
AT1 bonds, also known as Additional Tier 1 bonds, are a type of debt instrument issued by banks to raise capital. These bonds are considered to be riskier than traditional bonds because they are perpetual, which means they have no maturity date, and they may be converted to equity at the discretion of the issuing Read more about What are AT1 bonds?[…]
A stock trading order known as an Immediate or Cancel (IOC) order instructs the broker to complete the deal right away, either in full or in part. Any part of the order that cannot be completed quickly will be cancelled right away if the broker is unable to promptly execute the entire transaction. This implies Read more about What is an “immediate or “cancel” order (IOC order) with reference to stock markets?[…]
A method of accounting called mark to market (MTM) is used in the stock market to value your open futures trade positions based on their current market price. This method replaces the previous cost or entry price with the current market price or value to determine the worth of your open trade position. Mark to market Read more about What is mark to market (MTM) in the stock market?[…]
The primary purpose of investing is to grow your wealth by putting your money into assets that have the potential to increase in value over time. This can include stocks, bonds, mutual funds, real estate, and other investment products. By investing your money wisely, you can earn a return on your investment and create a Read more about What is the primary purpose of investing?[…]
Interest rate derivatives are financial contracts that allow investors to manage their exposure to changes in interest rates. These instruments derive their value from the movement of interest rates and are used to hedge against or speculate on changes in interest rates. Interest rate derivatives are used extensively by banks, corporations, and other market participants Read more about What are interest rate derivatives?[…]
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[…]
In the stock market, beta is a measure of the volatility, or systematic risk, of a stock relative to the overall market. Beta is used by investors to gauge the level of risk associated with a particular stock and to help make investment decisions. Beta is calculated as the covariance of a stock’s returns with Read more about What is beta in stock markets?[…]
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?[…]
“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?[…]
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?[…]
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?[…]
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?[…]
The logic behind higher highs and lower lows is a basic technical analysis principle used to determine the trend of an asset, such as a stock or a currency. A higher high refers to a situation where the current high of an asset is greater than the previous high. This indicates that the trend is Read more about Logic behind Higher Highs and Lower Lows[…]
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?[…]
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?[…]
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?[…]
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?[…]
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 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?[…]