What is Stock Market?
Stock market or as also known as equity market is a place where shares of companies are traded either through exchanges or over-the-counter mechanism. Share is a slice of ownership in the company and traded in stock market at mutually agreed upon price based on the company's future performance.
What is Forex Market?
Forex stand for Foreign Exchange, the market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day. Forex market provides high degree of leverage upto 1:400. Currently in India Forex trading is not in main stream but slowly it is gaining momentum. ArthSutra provides full training and knowledge to forex market trading aspirants.
Can I trade commodities in India?
Yes, Commodities can be traded in India through various large brokerage houses.
What is stock future?
Stock Future is a financial contract in which the buyer is bound to purchase underlying stock (or the seller to sell underlying stock), at a predetermined future date and price. Some futures contracts may call for physical delivery of the stock, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets. Beside stocks futures are heavily traded in stock and sector index and commodities.
How to trade Stock futures in India?
NSE is having highest future liquidity in Indian market. Commodity futures are traded in NCDEX and MCX. It is always advised to learn/Start trading with stocks and then move to future trading. All major brokerage houses have facility to trade both stocks and futures.
What is stock option?
The option is a contract that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Option writer has obligation to buy(sell) or sell (call) a security at pre-determined price at time of exercise of option by buyer.
What is BTST?
BTST stand for Buy Today and Sell Tomorrow. It is method provided by individual broker to enable trades to take small 1-2 day momentum based long trade in stock market.
What is Short Selling?
Short selling is the process of selling the share by temporarily borrowing it from brokers account in anticipation of price to fall so it can again be bought at lower price. Selling short is the opposite of going long where person wait for appreciation of stock price to make profit, whereas short sellers make money if the stock goes down in price.
What is broker?
Broker is an agent or firm who acts as intermediatory between exchange and trader to execute stock trades for small fees or commission.
How to choose the broker?
To choose a broker one need to take in consideration following ?
1. Reasonable commission
2. Good name and standing in market
What is Demat account?
Demat account is an account with bank where shares are kept in dematerialized form ( non paper form). As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the Demat Provider will provide you with periodic statements of holdings and transactions.
What is IPO?
Initial Public Offering or IPO is the process where an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer?s securities. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains.
What is Technical Analysis?
Technical Analysis is a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns. Technical analysis is used in study of trading histories to identify price trends in particular stocks, mutual funds, commodities, or options in specific market sectors or in the overall financial markets.
What is Fundamental Analysis?
Fundamental analysis looks at a share?s market price in light of the company?s underlying business proposition and financial situation. It involves making both quantitative and qualitative judgments about a company. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies).
What is Mutual Fund?
Mutual Funds are portfolio of stock market shares and other financial instruments built with funds collected from many small and big investors whose primary concern is security of investment. A mutual fund may focus on stocks, bonds, cash, or a combination of these asset classes.These funds are run by big banking and financial institutions.