Recency bias, a cognitive bias where individuals give more weight to recent events than to earlier ones, can have several implications for intraday trading. In the context of intraday trading, recency bias can influence traders’ decision-making in the following ways: Short-Term Trends: Traders may be more inclined to follow short-term trends based on recent price Read more about How is recency bias relevant to intraday trading?[…]

The relationship between interest rates and stock market growth can vary, and it is not strictly categorized as universally positive or negative. Generally, the correlation between interest rates and the stock market can be complex and context-dependent. Positive Correlation: In some scenarios, a positive correlation may exist. For instance, during periods of economic expansion, rising Read more about Is there a positive or negative correlation between interest rates and the growth of the stock market?[…]

Several factors contribute to investor enthusiasm when the stock market reaches record highs: Wealth Effect: As stock prices rise, investors often experience an increase in wealth. This wealth effect can lead to greater consumer confidence and spending, driving economic growth. Positive Sentiment: Record highs indicate a positive market sentiment. Investors may interpret this as a Read more about What factors contribute to investor enthusiasm when the stock market reaches record highs?[…]

The Price-to-Book (P/B) ratio in the stock market is a financial metric that relates a company’s stock price to its book value per share. It is calculated by dividing the market price per share by the book value per share. The P/B ratio is a key indicator used by investors to assess the market’s valuation Read more about How does the P/B ratio relate to the stock market?[…]

An Offer for Sale (OFS) and an Initial Public Offering (IPO) are both methods through which companies can make their shares available to the public, but they differ in the nature of the shares being offered and the parties involved. Nature of Shares: OFS: In an OFS, existing shareholders, such as promoters, large institutional investors, Read more about How is an OFS different from an IPO? OFS vs. IPO[…]

In the context of the share market, “OFS” stands for “Offer for Sale.” An Offer for Sale is a method used by companies to sell their existing shares to the public. In an OFS, the existing shareholders, often promoters or large institutional investors, sell a portion of their shares to the public, and the proceeds Read more about “ofs” meaning in the share market? Offer For Sale.[…]

A Qualified Institutional Placement (QIP) is a strategic financial mechanism utilized by publicly traded companies to procure capital swiftly and efficiently. Through a QIP, companies issue various securities, including but not limited to equity shares, debentures, and other financial instruments, directly to qualified institutional buyers (QIBs). These QIBs are typically large and sophisticated institutional investors, Read more about What is qip in the stock market? Qualified Institutional Placement.[…]

The Volume Point of Control (VPOC), a technical analysis indicator used in intraday trading, shows the price level where the most trading activity has taken place during a specific time period, usually a trading day. It frequently goes hand-in-hand with volume profile analysis, which aims to comprehend the distribution of trading volume at various price Read more about Relevance of volume point of control in intraday trading[…]

While technical analysis is critical for intraday trading since it gives traders the skills to analyse price patterns, trends, and indications, it is conceivably even more crucial to have a strong trading psyche. In the context of intraday trading, trade psychology is more important than technical analysis for a number of reasons: Emotional Control: Making Read more about Why is a strong trading psychology more important than technical analysis when it comes to intraday trading?[…]

Securities Transaction Tax (STT) is a tax that is levied on the purchase or sale of securities listed on recognized stock exchanges in India. It was introduced in India in 2004 and is a tax on the transaction value of securities. STT is payable by both buyers and sellers of securities and is collected by Read more about What is securities transaction tax / stt?[…]

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?[…]

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?[…]

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) ?[…]

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?[…]

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?[…]

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?[…]

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?[…]

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?[…]