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What Is Crowdfunding?
Crowdfunding is the art of financing a project or venture by pooling together small contributions from a large number of individuals, ideally through an online platform. People use crowdfunding to finance all kinds of ventures and activities: make a film, launch a tech startup or simply raise money for a social cause.…
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Market-wide Circuit Breaker In NSE & BSE
Market-wide Circuit Breaker is a measure employed by stock exchanges to prevent extreme volatility in the markets by halting trade for a defined time frame when the broad market index rises or falls by a certain percentage over the previous day closing level of the index. In India, the index-based market-wide circuit…
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Stop Loss Market Vs Stop Loss Limit Order
A stop loss order is placed as an automatic ‘exit’ option from a loss trade. Stop loss orders are an integral part of short-term and intraday trading strategies and help take emotions out of play while taking ‘exit’ decisions. A trader approaches a trade with a pre-determined loss tolerance limit and by…
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Increase In Deliverable Quantity Could Signal An Uptrend
An increase in deliverable quantity accompanied by a rise in price – could signal a possible uptrend for the near future. This is because more buyers are taking delivery in the anticipation that the price would go up further in the future. Therefore, an increase in deliverable quantity accompanied by a price…
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What Is A Total Returns Index
Stock indices like the NIFTY and the SENSEX are price indices – meaning that they capture only the changes in prices of the constituent scrips. Thus if you own the same stocks that constitute the NIFTY (and in the same weightage), the returns from your portfolio over a given period of time…
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Top 5 Intraday Trading Tips
This post is a collection of my best intraday trading tips to help you make money on your intraday trades. 1. Pick high volume counters For all intraday trades, always bet on counters that are generally traded in high volumes. This is primarily because in low volume counters, even a handful of…
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Short Selling In Intraday Trades To Make Money
Short selling involves selling a stock which you don’t own and then buying it back later in order to square your position. Short selling can help you make money in intraday trades when you expect that the price of a particular security will fall during the course of the day. How you…
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Market Makers – Concept
Market makers are market participants entrusted with the task of infusing liquidity into the market structure by providing two-way (both buy and sell) quotes for all scrips they act as market makers to. By proving 2-way quotes, the market makers stand ready to buy from and sell to investors willing to transact…
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American And European Options
An American Option is an option contract that can be exercised ‘anytime’ i.e on before the expiry date. On the contrary, European Options can be exercised only on the expiry date. The premium payable on an American Option is generally higher than that of a European Option.
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Meaning of Clean Price and Dirty Price
Clean price and dirty price are terms associated with the bond market. When bond prices are quoted exclusive of interest accrued (ex-interest), the same is termed as ‘clean price’. On the other hand, price including the accrued interest (cum-interest) is called Dirty Price. Therefore, Dirty Price = Clean Price + Accrued Interest.…
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The Concept Of Market Capitalisation
Market Capitalisation is a term which is used to define a company’s worth in terms of its market valuation. It is arrived at by multiplying the total outstanding shares of a company by its current market price. Market Capitalisation is frequently referred to as ‘Market-Cap’
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Who Are Institutional Investors
The term ‘Institution’ can be defined as ‘an established organization’. Institutional Investors, as distinguished from individual investors, are ‘established organisations’ with a separate legal existence that pool contributions from various small investors and invest them into different investment vehicles to generate returns for these investors. Institutional Investors include banks, mutual funds, insurance…