MIS – Stands for Margin Intraday Square Off. MIS product code is used for trading Intraday Equity, Intraday F&O, and Intraday Commodity Trading. When you choose MIS as a product type and buying a any particular stock then you not need pay full amount of that stock. you should only need to pay small [...]
Averaging Down It involves buying more shares after there is a fall in stock prices following the initial purchase. The strategy leads to lowering the average cost of all the shares held thus lowering the breakeven point. Here‘s an example of how averaging down works. Consider you have purchased 200 [...]
Price correction in the stock markets refers to a phenomenon where inflated stock prices fall sharply after reaching record highs. This inflation in the stock prices is generally caused by investors who anticipate gains and purchase shares in bulk, while the fall is caused due to investors dumping their shares and cashing [...]
Terminology used :- Turnover = Number of Shares * Price STT = Securities Transaction Tax SEBI = Securities and Exchange Board of India AMC = Annual maintenance charges DP = Depository Participant Various types of charges:- Securities Transaction Tax (STT) :- Tax by the government when transacting on the exchanges. [...]
When an investor borrows money from his broker to buy stocks, the process is called Margin Trading. Margin is a way of increasing your purchasing power for investments. Buying on margin means that you take a loan from your broker to increase the amount of funds you have at your [...]
Intraday trading as the name suggests refers to the trading system where you have to square-off your trade on the same day. Squaring off the trade means that you have to do the buy and sell or sell and buy transaction on the same day before the market close. Intraday [...]
A stop-loss order helps you limit your losses or protect your profits. The difference between a regular and trailing stop-loss order is that the regular stop-loss must be changed manually, while a trailing stop-loss is adjusted automatically based on the amount or percentage you set. When you buy a stock [...]
Indian share markets remain open for equity trading on all weekdays except Saturdays, Sundays and declared market holidays. NSE / BSE Opening Time: 09:15 AM IST NSE / BSE Closing Time: 3:30 PM IST The stock market timings can be divided into three sessions. They are: Pre-opening session Normal session [...]
A futures contract is an agreement between two parties – a buyer and a seller – wherein the former agrees to purchase from the latter, a fixed number of shares or an index at a specific time in the future for a pre-determined price. These details are agreed upon when [...]
What is a Derivative A derivative is a financial security with a value that is reliant upon or derived from an underlying asset or group of assets. The derivative itself is a contract between two or more parties based upon the asset or assets. These financial instruments help you make profits by [...]