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Types of Orders for trading

08-Jan-14 03:57PM

The system allows the trading members to enter orders with various conditions attached to them as per their requirements. These conditions are broadly divided into the following categories. • Time conditions • Price conditions • Other conditions Several combinations of the above are allowed thereby providing enormous flexibility to the users. The order types and conditions are summarized below.

Types of Orders for trading

Speculation and Hedging

19-Dec-13 03:58PM

Speculators are those who do not have any position on which they enter in futures and options market. They only have a particular view on the market, stock, commodity etc. In short, speculators put their money at risk in the hope of profiting from an anticipated price change. They consider various factors such as demand and supply, market positions, open interests, economic fundamentals and other data to take their positions.

Speculation and Hedging

Factors Driving the Growth of Derivatives

09-Dec-13 06:06PM

Over the last three decades, the derivatives market has seen a phenomenal growth. A large variety of derivative contracts have been launched at exchanges across the world. Some of the factors driving the growth of financial derivatives are:

Factors Driving the Growth of Derivatives

Stock Quote – Lifeline of an investor

29-Nov-13 11:25AM

Stock quote is that magical figure that gives you all the information related to stock Stock quotes can be obtained in newspapers and online but the most convenient place is online as it is very close to real time information. There are many websites which help you to get real-time quotes at a mouse click. Different sources provide different sets of information.

Stock Quote – Lifeline of an investor

Volatility of Stock Markets and its causes

28-Nov-13 10:09AM

Volatility is one of the best phenomenon without which stock markets will loose its charm. It is the tendency of fluctuation of market indices over a period of time; more is the fluctuation, higher is the volatility. The ups and downs of stock prices is what that adds spice to the market behaviour. This see-sawing effect has its own implications, both good and bad. Good, because prudent investors taking advantage buy on dips and sell on highs for profit booking. On the flip side, greater volatility lowers investor’s confidence in the market prompting them to transfer their investment in less risky options due to unexpected market behavior.

Volatility of Stock Markets and its causes

About NCDEX Spot Exchange Ltd. (NSPOT)

15-Nov-13 11:59AM

NSPOT is a delivery based transparent,real time, online spot exchange of the country. It is established as per the guidelines of Ministry of Consumer Affairs, Government of India. NSPOT is a wholly owned subsidiary of NCDEX which is the leading Indian Agriculture Commodity Derivatives Exchange. NCDEX SPOT derives its strength from its parent organization (i.e. NCDEX) in creating and managing electronic online trading along with the concomitant risk management system, clearing and delivery process whoch will immensely contribute building an active, liquid and a vibrant spot price delivery platform for agri as well as non-agri commodities at country level and also be a bench mark for pricing.

About NCDEX Spot Exchange Ltd. (NSPOT)

Shareholders of NCDEX and its products

28-Oct-13 03:46PM

NCDEX is promoted by a consortium of four institutions. These are National Stock Exchange (NSE), ICICI Bank, Life Insurance Corporation of India (LIC) and National Board for Agriculture and Rural Development (NABARD). Later on their shares were diluted and more institutions became shareholders of NCDEX. These are Canara Bank, CRISIL Limited, Indian Farmers Fertilizers Cooperative Limited (IFFCO), Punjab National Bank (PNB), Goldman Sachs, Intercontinental Exchange (ICE) and Shree Renuka Sugars Ltd.

Shareholders of NCDEX and its products

Trading in Circuit Limits

22-Oct-13 05:21PM

The major stock and commodities exchanges have instituted procedures to limit mass or panic selling in times of serious market declines and volatility. These mechanisms are known as Circuit Breakers, the Collar Rule, and Price Limits. Circuit Breakers establish whether trading will be halted temporarily or stopped entirely. The collar Rule and Price Limits affect the way trading in the securities and futures markets takes place

Trading in Circuit Limits

Investor Services Cell and Arbitration

15-Oct-13 06:24PM

Investor Service Cell (ISC) handles the investor’s complaints against the trading members / companies in respect of claims/disputes for transactions executed on the Exchange. The complaints are forwarded to the trading members for resolution and seeking clarifications. The ISC follows-up with the trading members and makes efforts to resolve the complaint expeditiously. In certain cases, on account of conflicting claims made by the investor and the trading member, when it is not possible to administratively resolve the complaint, investors are advised to take recourse to the arbitration mechanism prescribed by the Exchange.

Investor Services Cell and Arbitration

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

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