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 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?[…]
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?[…]
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?[…]
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?[…]
“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?[…]
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?[…]
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?[…]
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?[…]
The European stock market opening session, also known as the European opening bell, is an important time for traders and investors in India because it sets the tone for the rest of the trading day (which is the after noon trading session in India). It is the first opportunity for traders and investors in Europe Read more about Why is the European market’s opening bell significant for day traders in India?[…]
Looking at charts while the stock markets are closed can give the impression that trading the markets is simple because the data is more static and therefore easier to analyze. When the markets are closed, there is no new information coming in and prices are not fluctuating, so it can be easier to identify trends Read more about Looking at charts while the markets are closed gives you the impression that the markets are predictable.[…]
CE (European call option) and PE (European put option) are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset (such as a stock, commodity, or currency) at a specified price (strike price) on or before a specified date (expiration date). A CE option gives the Read more about What are CE and PE in options, and how to easily remember them? What exactly is it? […]
A technical indicator divergence is a difference in the movement or direction of a security’s price and an indicator derived from that security’s price or volume, such as moving averages, momentum indicators (RSI, MACD) and oscillators, which are used to analyze the market trend and make predictions about future price movements. The divergence is typically Read more about What is a technical indicator divergence?[…]