Stock market prediction is a time-sensitive prediction. Why?

Stock market prediction is a time-sensitive prediction because the stock market is a highly dynamic and volatile system. The prices of stocks and other securities fluctuate constantly due to a variety of factors, including economic indicators, company news, geopolitical events, and investor sentiment. These factors can change rapidly and unexpectedly, which means that stock market Read more about Stock market prediction is a time-sensitive prediction. Why?[…]

What is liquidity risk in stock markets?

Liquidity risk refers to the risk that an investor may not be able to buy or sell a security, such as a stock, at a desired price or in the desired quantity due to a lack of market participants or insufficient trading volume. In the context of stock markets, liquidity risk arises when there is Read more about What is liquidity risk in stock markets?[…]

What are American depository receipts (adr) ?

American Depository Receipts (ADRs) are certificates issued by U.S. depository banks that represent shares of foreign companies. ADRs allow U.S. investors to invest in foreign companies without having to buy the actual shares on a foreign stock exchange. When a foreign company decides to issue ADRs, it will typically hire a U.S. bank to manage Read more about What are American depository receipts (adr) ?[…]

What is a real estate investment trust?

A real estate investment trust (REIT) is a type of investment fund that owns and operates income-generating real estate properties. REITs invest in a range of real estate assets, such as commercial office buildings, residential properties, shopping malls, hotels, and industrial warehouses. REITs are designed to provide investors with an opportunity to invest in real Read more about What is a real estate investment trust?[…]

What is the Federal Open Market Committee?

The Federal Open Market Committee (FOMC) is the monetary policymaking body of the United States Federal Reserve System. It is responsible for setting monetary policy in the United States, including decisions related to interest rates and the money supply. The FOMC is made up of twelve members, seven members of the Federal Reserve Board and Read more about What is the Federal Open Market Committee?[…]

What is hedging in the stock market?

In the stock market, hedging refers to a strategy used by investors to reduce or mitigate the risk of potential losses. Hedging is done by taking an offsetting position in a security or a group of securities that are negatively correlated with the original position. For example, an investor who holds a portfolio of stocks Read more about What is hedging in the stock market?[…]

Why are the stock markets volatile during the first few minutes of the market opening?

The stock markets can be highly volatile during the first few minutes of the market opening due to several reasons: Overnight news and events: News and events that occur outside of market hours, such as economic data releases or geopolitical developments, can lead to significant price movements when the market opens. This can cause a Read more about Why are the stock markets volatile during the first few minutes of the market opening?[…]

What are the components of an option chain?

An option chain is a table that displays the available options contracts for a particular underlying asset, such as a stock or an index. The components of an option chain include: Strike price: The strike price is the price at which the underlying asset can be bought or sold if the option is exercised. Expiration Read more about What are the components of an option chain?[…]

What are triangle pattern breakouts?

A triangle pattern breakout is a pattern that occurs in technical analysis when the price of a stock or other asset moves out of a triangular pattern. A triangular pattern is a chart pattern that is characterized by a series of lower highs and higher lows, which form a triangle on a price chart. The Read more about What are triangle pattern breakouts?[…]

What is ichimoku cloud trading strategy / ict trading strategy?

Ichimoku is a technical analysis trading strategy that uses multiple indicators to analyze financial markets. It was developed in Japan by a journalist named Goichi Hosoda in the late 1930s and has since become popular around the world. The name “Ichimoku” means “one look” in Japanese, which refers to the idea that traders can get Read more about What is ichimoku cloud trading strategy / ict trading strategy?[…]

What is an “immediate or “cancel” order (IOC order) with reference to stock markets?

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?[…]

What is mark to market (MTM) in the stock market?

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?[…]

What are interest rate derivatives?

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?[…]

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?[…]