Blog

Block Trading Session of Stock Market

11-Oct-13 06:28PM

The Exchange has introduced a separate trading session for the block trades from November 14, 2005. In this session, trading is conducted in the Odd Lot market (market type ‘O’) with book type ‘OL’ and series ‘BL’. It is a 35 minute market; i.e. the trading window shall normally remain open from 9:15 hours to 9:50 hours. There is no pre-open and post close in the block trade session. For a block trade, order should be of a minimum quantity of 5,00,000 shares or minimum value of Rs. 5 crore which ever is lower.

Block Trading Session of Stock Market

Trade Management in Stock Market

10-Oct-13 12:05PM

A Trade is an activity in which a buy and sell order match with each other. Matching of two orders is done automatically by the system. Whenever a trade takes place, the system sends a trade confirmation message to each of the users involved in the trade. The trade confirmation slip gets printed at the trader workstation of the user with a unique trade number. The system also broadcasts a message to the entire market through the ticker window displaying the details of the trade. Before the trade is effected, the system performs checks with respect to the following parameters:

Trade Management in Stock Market

The Benefits of Long term Investments

07-Oct-13 06:47PM

While short term investing may give investors some thrills and even deliver gains, long-term investors have a many benefit from: • Dividends: Companies usually pay dividends to their shareholders those keep hold into their companies share for long term which increase the value of their investments. Some companies reinvest dividends with additional share purchases and increase the value of your investment further. • Escape from price fluctuations: Investments for long tenure escapes from price fluctuations for any point of time. During the short-term investments, all sorts of events

The Benefits of Long term Investments

NCDEX Trading Platform

05-Oct-13 03:59PM

National Commodity and Derivatives Exchange Ltd. (NCDEX) is a technology driven commodity exchange. It is a public limited company registered under the Companies Act, 1956. It has been launched to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. NCDEX is regulated by Forward Markets Commission in respect of futures trading in commodities. NCDEX currently facilitates trading of various commodities – gold, silver, base matels, and many agri products.

NCDEX Trading Platform

What are Options in stock market?

04-Oct-13 07:34PM

An option is a contract which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date. “Option†as the word suggests, is a choice given to investor to either honors the contract, or if he chooses exits from the contract. There are two kinds of options: Call Option and Put Options.

What are Options in stock market?

Clearing And Settlement in Stock Market

03-Oct-13 05:07PM

The clearing and settlement mechanism in Indian Securities market has witnessed significant changes and several innovations during last decade. These include use of the state-of-art information technology, emergence of clearing corporations to assume counter party risk, shorter settlement cycle, dematerialize and electronic transfer of securities, fine tuned risk management system.

Clearing And Settlement in Stock Market

Methods of buying and selling of shares

01-Oct-13 04:59PM

Market Orders : When you put buy or sell price at market rate then the price get executed at the current rate in the market. The market order gets immediately executed at the current available price. In market order there is no need to mention the price, the transaction will get executed at the best current available price.

Methods of buying and selling of shares

What is Short Selling?

18-Sep-13 04:04PM

Short selling means selling the securities which you didn't buy at all. The term short here signifies that you do not hold the securities being sold. The first thought strikes up would be – where do these shares come from which you are going to sell without possessing them in your account.

What is Short Selling?

What is inactive and active share?

13-Sep-13 05:41PM

Active shares are those in which transactions take place every day, or almost every day on the stock exchange. At the other extreme are shares in which transactions take place rarely, once in while called inactive shares moreover an inactive share has been defined as one, which is transacted less than two times a month in any stock exchange.

What is inactive and active share?

Functions of SEBI

11-Sep-13 06:38PM

In India Securities Exchange Board of India (SEBI) has been established by Indian Government in 1998 and given statutory powers for the purpose of to protect the interest of the investors and to promote development and regulate the stock market.

Functions of SEBI

About National Stock Exchange (NSE)

06-Sep-13 04:53PM

There are two major stock exchanges in India named Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) situated in Mumbai, India both are responsible for majority of share transactions. NSE is mutually owned by a set of leading banks, financial institutions, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.

About National Stock Exchange (NSE)

What is IPO

04-Sep-13 07:05PM

An initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital for business requirements.

What is IPO

Trading in Commodity Market as per current scenario

03-Sep-13 04:48PM

Commodity market behaves as per economical situations and changes in country. As per the market experts investments in commodities provides the shield against inflation because if inflation increases, the prices of commodity will also increase. However monsoon is very good in this year therefore expectation of more profit in commodities agri products and due to disturbance in Syria, the crude oil price can be expected to high, gold is also touches it’s new high due to major movements in currency market.

Trading in Commodity Market as per current scenario

Commodity Futures trading

02-Sep-13 04:30PM

In India there is a controller under ministry of consumer affairs known as Forward Market Commission (FMC) for better management and transparency in trading of different commodities. FMC have given permissions to different national and regional stock exchanges for future trading of all listed commodities. The purpose for establishment of these exchanges is to get the fair and actual prices of different products and minimize the risk of exporters, traders and also helps the farmers.

Commodity Futures trading

Who will inherit the shares?

27-Aug-13 06:43PM

At the time of opening a Demat account for trading in shares, you should be ensure to give the details of nominee to whom shares will be transferred in case of account holder death. His/her heir not entitled to get the shares transferred into their names if not mentioned as nominee, the shares will go to those nominee whom details updated in the Demat account.

Who will inherit the shares?

Investments in Government Bonds

26-Aug-13 03:45PM

The initiates taken by RBI to stop the falling of Rupees value against the Dollar this resulting the effects on low liquidity in the system and arising the Rate of Interest. To overcome from this situation and managing the proper liquidity for proper flow and availability of funds to production industries, Central Bank has planned for purchasing the Govt. Bonds of 8000 Crore from options open market.

Investments in Government Bonds

Intraday Trading

24-Aug-13 04:31PM

Day trading means buy/selling of shares and off setting the positions on same day. Day trading serves the purpose of bringing the liquidity to market and they help the market movement, more then 80% of the volume of stock market comes from day trading after introduction of derivative market and advanced trading techniques had made the day trading to grow the market more.

Intraday Trading

Why the Rupee is Falling?: Key Reasons & Remedies Explained

23-Aug-13 06:22PM

Since couple of months back Indian Rupee has fallen so much. Everybody is worried for this fallen and wants to know how much it will fall further. Indian Govt. has taken up various measures to control the falling of Rupee value but all efforts going in vain. The foreign flows of money are going from India frequently due to which Rupee value has fallen 65 against the Dollar$. Decreasing Rupees value creates inflation in country certainly. To control the inflation is the biggest challenge before Indian economy.

Why the Rupee is Falling?: Key Reasons & Remedies Explained

Hedging the Safeguard of Investments

22-Aug-13 01:12PM

Hedging is the technique which reduces the investment risks of investors in stock market. The work done through counter balancing means another investment to hedge the risk of previous investment, in other words hedging the investment in different investment options those are having different approach. This need to be remembering there are some value for each hedge which have to be paid by investors, traders if market moves negative moreover hedging strategies can be wrong as it’s not a complete science.

Hedging the Safeguard of Investments

Body and body parts of Candles formed in candlestick charts

21-Aug-13 07:52PM

Body of candles is like a candle with a stick on top and bottom of the candle, with a open, low, close, high, upper shadow and bottom shadow, like it appears in below image:

Body and body parts of Candles formed in candlestick charts

New Home sales

19-Aug-13 04:30PM

New home sales measures the number of newly constructed homes with a committed sale during

New Home sales

Arbitrage Funds and it's Benefits

14-Aug-13 04:58PM

Price movement (upward and downward) of share market is the process of the market. But how do you feel if you can make profit in price movement? Arbitrage funds takes the benefits in price differences in two different stock exchanges, these funds works only on single principle i.e. to sell the securities in different markets so that can make maximum profit and lower the risk.

Arbitrage Funds and it's Benefits

How Candlestick Charts Work in Technical Analysis?

13-Aug-13 07:25PM

Introduction to Candlesticks History: In 17th century Japanese began using technical analysis to trade in the commodity of rice. This version of analysis was different from the US version initiated by Charles Dow around 1900, many of the guiding principles were very similar:

How Candlestick Charts Work in Technical Analysis?

Consumer Sentiment

13-Aug-13 04:39PM

The University of Michigan’s consumer survey center has questioned across 500 different households each month of their financial conditions and attitudes about economy. Consumer sentiment is directly related to the strength of consumers spending; consumer’s confidence and consumer sentiments are two ways of talking about consumers attitudes.

Consumer Sentiment

Retail Sales and its impact on Commodity market

12-Aug-13 05:29PM

Retail sales measures the total receipts at stores that sell merchandise and related services to final consumers. Sales are by retail and food services stores. Data are collected from the monthly retail trade survey conducted by the US Bureau of the census. Essentially the retail sale covers the durable and non-durables portions of consumer spending.

Retail Sales and its impact on Commodity market

Types of charts in Technical Analysis study

11-Aug-13 12:32PM

Technical Analysis on stocks and commodities is based on chart analysis. Charts are made through history data of price and volume of securities. Different types of charts available for study of technical analysis are:

Types of charts in Technical Analysis study

Chart Analysis in Technical Analysis of stocks and commodity

11-Aug-13 11:41AM

Technical analysis of securities could be as complex or as simple as we make it. The below said example will explain it in a simplified version. If our interest is in buying stocks, than our focus should be on spotting bullish situations.

Chart Analysis in Technical Analysis of stocks and commodity

Currency futures and its benefits

09-Aug-13 11:05PM

Currency futures are introduced in India in 2008. The opening of the currency derivatives in India was a revolution in the domestic financial markets. The currency exchange in India is rising day on day only because by increased awareness about the trade among all market players, base of forex market is based on USD-INR futures

Currency futures and its benefits

EIA Petroleum Status Report

08-Aug-13 05:55PM

The Energy information administration (EIA) publishes weekly information, reports on Petroleum inventories in the US, weather produced in USA or in rest of the world. The level of inventories helps determine prices for petroleum products

EIA Petroleum Status Report

Jobless Claims Data

06-Aug-13 03:37PM

Jobless claims data is a major data that releases in United States of America. A jobless claims are made by those people who are unemployed. New unemployed claims are compiled weekly to show the number of individuals who have filed for unemployment insurance for the first time.

Jobless Claims Data