Category Archives: Trading Technique

Options Trading Strategy

SPECULATION: BEARISH SECURITY. SELL CALLS OR BUY PUTS Do you sometimes think that the nse india is going to drop? That you could make a profit by adopting a position on the market? Due to poor corporate results, or the instability of the government, many people feel that the stocks prices would go down. How does one implement a trading strategy to benefit from a downward movement in

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Use of Futures Market Ry Index Funds

USE OF FUTURES MARKET RY INDEX FUNDS Futures markets can be used for creating synthetic index funds. Synthetic index funds created using futures contracts have advantages of simplicity and low costs. The simplicity stems from the fact that index futures automatically track the index. The cost advantages stem from the fact that the costs of establishing and re­balancing the fund are substantially reduced because

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Day Trading Techniques

Concept Of Day Trading And Day Trading Techniques For Individuals Concept Of Day Trading The term day trading refers to the practice of buying and selling financial instruments. However it should be noted that it should be done within the same trading day such that all the positions are usually closed before closing of the market in the trading day. People who practice or participate in

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investors lap

  MUMBAI: Overseas investors have a bigger appetite for equity offerings by Indian companies than local investors. Between April and August this year, the amount raised by India Inc through overseas issues, mainly global depository receipts (GDRs), is almost thrice the amount it raised during the same period last year. According to data available with Prime Database, in FY07 (April-August) so far, corporates have

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21 April 2009

click here for PDF NEWSLETTER 21 April 2009 Daily Market Outlook: 21 April 2009 It started as a good day for the Indian equity markets as both the leading indices managed to trade in green but the market could not sustain the higher levels moving southward in the second half to close in red. While Sensex closed at 10979.50 (Down 43.59 Points) Nifty closed

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What is Screen Based Trading?

The trading on stock exchanges in India used to take place through open outcry without use of information technology for  immediate matching or  recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and  effic iency. In order to provide efficiency,  liquidity and transparency, NSE introduced a  nationwide, on-line, fully-automated  screen based trading system (SBTS) where a member can

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What is a Contract Note?

Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member. It imposes a  legally enforceable  relationship between the client and the trading member with respect to  purchase/sale  and settlement of trades. It also helps to settle  disputes/claims between the investor and the trading member. It is a  prerequisite  for filing a complaint or

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What details are required to be mentioned on the contract note issued by the stock broker?

A broker has to issue a contract note to clients for all transactions in the form specified by the stock exchange. The contract  note inter-alia should have following: §Name, address and SEBI Registration number of the Member broker. §Name of partner/proprietor/Authorised Signatory. §Dealing Office Address/Tel. No./Fax no., Code number of the member given by the Exchange. §Contract number, date of issue of contract note,

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What Do’s and Don’ts should an investor bear in mind when investing in the stock markets?

Ensure that the intermediary (broker/sub-broker) has a valid SEBI registration certificate.  Enter into an agreement with your broker/sub-broker setting out terms and conditions clearly. Ensure that you give all your details in the ‘Know Your Client’ form. Ensure that you read carefully and understand the contents  of the ‘Risk Disclosure Document’ and then acknowledge it. Insist on a contract note issued by your broker

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What are the products dealt in the Secondary Markets?

Following are the main financial products/instruments dealt in the Secondary market which may be divided broadly into Shares  and Bonds: Shares: Equity Shares: An equity share, commonly referred to as ordinary share, represents the form of fractional ownership in a  business venture. Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held, at a price.

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