How to select stocks for trading
Please explain
What does CNC mean?
Cash and Carry (CNC) is used for delivery-based trading in equity, which means you intend to hold the stocks overnight or for as long as you wish. CNC does not provide leverage, and you cannot take short positions, but you can sell stocks from your
What are G-secs?
G-secs, or Government Securities, are long-term debt instruments issued by the Government of India to raise funds for longer periods, typically ranging from 5 years to 40 years. They are issued at face value and pay a fixed rate of interest called the
What does NRML mean?
Normal (NRML) is used for overnight trading of futures and options, and for delivery-based trading of currency. NRML does not provide intraday leverage.
What does MIS mean?
Margin Intraday Square Off (MIS) is used to get intraday leverage for trading equity, equity F&O, commodity futures, and currency futures. Positions under MIS are automatically squared off at the end of the day if they are not closed before the auto-square-off
What are T-bills
T-bills, or Treasury Bills, are short-term debt instruments issued by the Government of India to raise funds for a short period, typically ranging from 91 days to one year. They are issued at a discount to their face value and redeemed at their face value
What is SDL
SDL stands for State Development Loans. These are bonds issued by state governments in India to fund their development projects.
Can retail investors apply for an OFS below the cut-off price?
As per the circulars released by NSE and BSE, retail investors are permitted to submit bids only at or above the cut-off price in an OFS.
Why is the cut-off price high for retail OFS orders?
The retail bids in an Offer For Sale (OFS) issue have a higher cut-off price because they are accepted on the second day after institutional and HNI orders have been processed on the first day. The cut-off price for the second day is determined based
What are closed-ended funds?
Closed-ended funds have a fixed unit capital, and a limited number of units are sold during their New Fund Offer (NFO) period. After the NFO period, investors cannot purchase units of a closed-ended fund. These funds raise a predetermined amount of capital
What are open-ended funds?
An open-ended fund is a mutual fund category that doesn't have any constraints on the issuance of new shares. When investors purchase shares, the fund creates new ones, and when they sell, the fund removes them from circulation. These shares are bought
What is an Offer For Sale (OFS)?
Through exchanges, an Offer For Sale (OFS) enables a company promoter to sell their shares to both institutional and retail investors.
What is a Bonus issue?
A bonus issue entails a company providing its current shareholders with free shares, instead of paying out dividends. This approach results in an increase in the total number of shares available, while the value of each share remains unchanged.
What are FDs?
FD rates are offered by banks and financial institutions for a fixed period of time, usually ranging from one month to ten years. The interest rate on an FD is fixed at the time of investment and remains constant throughout the investment period. The
What is Net Asset Value (NAV) ?
Net Asset Value (NAV) is a financial term used to represent the value of a company's or investment fund's assets minus its liabilities, per share or unit. The NAV is calculated by subtracting the value of a company's liabilities from the value of its
What are the most important parameters that an Investor should look into while Investing in any company
Please explain
What will be the Impact of STT hike and what needs to be done in order to get to breakeven
Please explain
What is market volatility and how does it impact trading decisions?
Market volatility refers to the degree of uncertainty or risk involved in the price movements of an asset or market. It is often measured by the standard deviation of the asset's price over a certain period.
When REs are credited ?
REs are credited to the demat account of the shareholders before the date of opening of the issue.
What is the difference between a bear market and a bull market?
A bear market is a market in which asset prices are falling, and investor confidence is low. It is typically characterized by sustained declines in stock prices, high volatility, and pessimistic sentiment. In contrast, a bull market is a market in which
Who is a distributor of mutual fund?
A distributor refers to an individual or entity that assists in executing mutual fund transactions between investors and asset management companies (AMCs). Essentially serving as a mediator, the distributor earns income through commissions paid by the
Whether REs are given in physical or in Demat form ?
REs are credited to the demat account of eligible shareholders in dematerialized form.
How can technical analysis be used to make trading decision.
Please explain
What is book closure date?
The date of book closure refers to the date by which a shareholder needs to have the stocks held in their demat account to qualify for corporate action benefits, including dividends, splits, and bonus shares. Throughout the book closure duration, requests
Whether REs are given in physical or in Demat form?
REs are credited to the demat account of eligible shareholders in dematerialized form.
What is Rights Entitlement (REs) ?
Rights Entitlements (REs) is the number of new shares of new shares that the shareholder of a company is eligible to apply for under the Rights issue offer of that company. REs are basically calculated by applying a ratio on the existing shareholding
Whether any person who are not existing shareholders of the issuer company as on record date, can apply to right issue ?
Yes. However, they need to purchase Rights Entitlement and then subscribe to the Rights issue before the close of the issue.
What is algorithmic trading?
Algorithmic trading, also known as automated trading or black-box trading, is a method of trading that uses computer programs to execute trades based on pre-defined rules and algorithms. It is often used by institutional traders and hedge funds.
What is short selling?
Short selling is a trading strategy in which an investor borrows shares of stock from a broker and sells them on the open market, with the expectation that the stock price will decrease. The investor can then buy back the shares at a lower price, return
Is it possible to add funds through a Paytm wallet or any other digital wallet?
Adding funds through the Paytm wallet or any other digital wallet is not accepted as the source of these payments cannot be traced and may lead to penalties. Instead, you can add funds through NEFT, RTGS, IMPS, and UPI. Please ensure that your mobile
What are derivatives?
Derivatives are financial instruments that derive their value from an underlying asset such as stocks, bonds, currencies, or commodities. Common types of derivatives include futures contracts, options, and swaps.
What is the process of trading REs?
REs are traded on a secondary market platform using a T+1 rolling settlement, which is comparable to the trading of equity shares.
What does record date and ex-date mean?
Record date refers to the date on which a company verifies its records to determine the eligible shareholders for corporate action. Shareholders who hold shares in their demat accounts on the record date are eligible for corporate actions like entitlement
What is the impact of mergers and spin offs on shares?
The effect of mergers and spin-offs on shares varies based on specific circumstances and the swap ratio. The swap ratio is the exchange rate of shares between companies involved in a merger, calculated by evaluating the assets and liabilities of the merging
What are the different brokerage slabs available?
There are different slabs available and this depends on the Margin amount provided. However, here are the standardized charges- • 0.30% on delivery • 0.03% on intraday & futures • ₹50 per lot on the trade of options."
Can I modify my account details through Justrade 2.0?
Yes, you surely can modify your details through Justrade 2.0 mobile app such as your mobile number, email Id, bank details, and address.
What is ASBA?
ASBA stands for Application Supported by Blocked Amount, a procedure utilized for submitting applications for Initial Public Offerings (IPOs) or Follow-on Public Offerings (FPOs) in India. In this process, investors' application funds are retained in
Can an individual apply for an IPO under the HNI category?
IPO applications ranging from ₹2 lacs to ₹5 lacs are classified as HNI. UPI can be used for amounts up to ₹5 lacs, and ASBA should be used for amounts exceeding ₹5 lacs. There is no specific option to apply for an IPO under the HNI category. Instead,
What does pledging involve and how does it operate?
Some investors may miss out on trading opportunities because they have a limited amount of available cash despite owning stocks, ETFs, and mutual funds. To address this, they can pledge their shares/ETFs as collateral, with a percentage deduction known
What do Trade to Trade (T2T) stocks mean?
The Trade to Trade (T2T) segment is where highly speculative stocks or those suspected of price manipulation are moved by exchanges. In this segment, intraday and BTST (Buy Today Sell Tomorrow) trades are not allowed, and all buy and sell transactions
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