Agent:
Agent is those who acts on behalf of
the client in buying or purchasing of shares.
Ask/Offer:
The lowest price an owner is willing
to sell the stocks.
At the money:
This is a situation at which an
options strike price is identical to the price of the underlying
securities.
Options trading activity remains to be high when
options are at the money.
Bear Market :
A market in which stock prices are
falling consistently.
Beta:
It is a measurement of relationship
between stock price of any particular stock and the movement of whole
market. High beta stocks are more volatile.
Bid:
It is the highest price a buyer is
willing to pay for a stock.
Bull Market:
A market in which the stock price are
increasing consistently.
Call Option:
An option that is given to investor the
right but not obligation to buy a particular stock at a specified
price within a specified time period. It is also represented in NSE
as CE.
Close Price:
The final price at which the stock is
traded on a given particular trading day.
Defensive Stock:
even in the periods of economic
downturn or critical situations of the stock market these companies
continue to pay the dividends with earning at a constant rate Known
as Defensive stock.
Delta:
The ratio that compares the change in
the price of the underlying asset to the corresponding change in the
price of a derivative.
Equity:
Common and preferred stocks, which
represents shares in the ownership of a company.
Face value:
It is
the cash denomination or the amount of money the holder of the
individual security going to earn from the issuer of the security at
the time of maturity.
Hedge:
A
strategy for reducing the risk of adverse price movements of assets.
Index:
Indices
have their own calculation methodology and are usually measured as a
percentage change in the base value over the time.
Initial Public Offering (IPO):
A
company's first issue of shares to general public for seeking funds
for expansion and growth.
Limit Order:
A
limit order sets a minimum price the seller is willing to accept and
maximum price the buyer is willing to pay for it.
Portfolio:
This
is basket of stocks, A portfolio may include various type of
securities of different companies operating in different sectors.
Pre-opening Session
The
pre-open session is for duration of 15 minutes i.e. from 9:00 AM to
9:15 AM. In pre-open session order entry, modification and
cancellation takes place.
Position:
Long
(Buy)or short ( Sell)position.
Price Spread:
Difference between
bid and ask price on security
Put Option:
An
option that is given to investor the right to sell a particular stock
at a stated price within a specified time period. Put option is
purchased by those who believe that particular stock price will go
down the stated price.
Short:
When you have not
soldsecurities you are said to be short of the market and will
benefit if price will fall.
Spot Price: The
current value of an asset.
Spread:
Difference
between buying price and and the selling price on which stock will be
sell.
Strike Price:
The price at which the holder of an option can buy (in case of call
option) or sell (in case of put option) the securities they hold when
the option is executed.
Stock Split:
This is an attempt to increase the number of outstanding shares of a
company by splitting the existing shares. It is usually done to
increase the availability of shares in the market.
Trading session:
The period of time from 9:15 AM to 3:30 PM is open for trading for
both sellers and buyers, within this time frame all the orders of the
day must be placed By Any exchange( NSE or BSE).
Yield:
The
return on an investment
