Stocks & Shares Education Centre

[vachhanipm]

Hi Radhika,

Nice work done ..Its like Super Market.... U can everything from one place...Good for Newbis

Pankaj

 

[nandu]

Re: Stock Options - What Are They ?

new 2 options ....help me??.

1. say for eg., Can I sell an option today and buy the same 2 days before expiry?. or "SELL" is purely based like "short sell"? in cash market.

2. what is the difference between below 2 strategies?.say nifty spot is 5400.

a. i buy 1 lot of 5700-CE@65 and 1 lot of 5500 -PE@55?.

b. buy 1 lot of 5700-CE@65 and SELL 1 lot of 5900-CE@15?

C.sell 1 lot of 5500-PE@55 and sell 1 lot of 5700-CE@65?

say now if, nifty spot 5600?

 

[vincentpaulfrancis]

Re: Investment Basics - What is a Demat Account

is it necessary to go through a broker to buy or sell shares, can i do it myself if i have a demat account

 

[ranj_2k]

Re: Investment Basics - What is a Demat Account

It is necessary to register with a broker to start buying and selling from demat a/c. You can do it without registration also, if you find any buyer of your shares which are in your demat a/c. But it is not in normal pratice.

 

[renu daga]

hi
radhika

well could not stop myself ,, from seeing this thread,,,
well u have just posted the theory part of the stock field,,,, the actual technical side is also too important,,,
and there is nothing harm in posting teh theory/or even the good technical part from one site and copy /paste here... if anybody needs ... well useful for every new one,,
so why memebrs giving negative reputation???
u all rae getting teh basics at one place..otherwise u ahve to search the net all over..

THIS SI TRUE WHAT DARSH HAS SAID,,, IN HIS POSTY FOR U!!!.

renu
HARD WORK NEEDS APPRECIATION...BY AT LEAST WHO ARE BENEFITTED!!!

 

[RadhikaSona]

hi
radhika

well could not stop myself ,, from seeing this thread,,,
well u have just posted the theory part of the stock field,,,, the actual technical side is also too important,,,
and there is nothing harm in posting teh theory/or even the good technical part from one site and copy /paste here... if anybody needs ... well useful for every new one,,
so why memebrs giving negative reputation???
u all rae getting teh basics at one place..otherwise u ahve to search the net all over..

THIS SI TRUE WHAT DARSH HAS SAID,,, IN HIS POSTY FOR U!!!.

renu
HARD WORK NEEDS APPRECIATION...BY AT LEAST WHO ARE BENEFITTED!!!

Dear Renu , your post has encouraged me alot. Now i will post mroe use full things for members. But i can't give link as it is of some other forum like this and if i do so then it will be SPAMMING and that will be agains forum guide line. There are alot of things i have seen in other forum which will benefit new comers in trade. And also one mroe thing i wanna put all topics at one place so it will be nice for me also to update my self on regular basis.


I m very very happy to see your reply ... Repp added to you.

 

[RadhikaSona]

Working of a stock market

Working of a stock market

To learn more about how you can earn on the stock market, one has to understand how it works. A person desirous of buying/selling shares in the market has to first place his order with a broker. When the buy order of the shares is communicated to the broker he routes the order through his system to the exchange. The order stays in the queue exchange's systems and gets executed when the order logs on to the system within buy limit that has been specified. The shares purchased will be sent to the purchaser by the broker either in physical or demat format

 

[RadhikaSona]

Indian Stock Market Overview.

Indian Stock Market Overview.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80 per cent of the equity volume traded in India. The NSE and BSE are equal in size in terms of daily traded volume. The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs 9,21,500 crore (Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,68,000 crore (Rs 9680-bln). Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. Both exchanges have a different settlement cycle, which allows investors to shift their positions on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more widely followed index. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrips traded on the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry forward system (Badla). The 'F' group represents the debt market (fixed income securities) segment. The 'Z' group scrips are the blacklisted companies. The 'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd.

 

[RadhikaSona]

Rolling Settlement Cycle :

Rolling Settlement Cycle :

In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE/BSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.

 

[RadhikaSona]

Concept Of Buying Limit

Concept Of Buying Limit

Suppose you have sold some shares on NSE and are trying to figure out that if you can use the money to buy shares on NSE in a different settlement cycle or say on BSE. To simplify things for ICICI Direct customers, we have introduced the concept of Buying Limit (BL). Buying Limit simply tells the customer what is his limit for a given settlement for the desired exchange. Assume that you have enrolled for a ICICI Direct account, which requires 100% of the money required to fund the purchase, be available. Suppose you have Rs 1,00,000 in your Bank A/C and you set aside Rs 50,000 for which you would like to make some purchase. Your Buying Limit is Rs 50,000. Assume that you sell shares worth Rs 1,00,000 on the NSE on Monday. The BL therefore for the NSE at that point of time goes upto Rs 1,50,000. This means you can buy shares upto Rs 1,50,000 on NSE or BSE. If you buy shares worth Rs 75,000 on Tuesday on NSE your BL will naturally reduce to Rs 75,000. Hence your BL is simply the amount set aside by you from your bank account and the amount realized from the sale of any shares you have made less any purchases you have made.


Your BL of Rs 50,000, which is the amount set aside by you from your Bank account for purchase is available for BSE and NSE. As you have made the sale of shares on NSE for Rs.100000, the BL for NSE & BSE rises to 1,50,000. The amount from sale of shares in NSE will also be available for purchase on BSE. ICICI Direct makes it very easy for its customers to know their BL on the click of a mouse. You just have to specify the Exchange and settlement cycle and on a click of your mouse, the BL will be known to you.