Trading Zone India

10.1 – Overview While the topic on clearing and settlement is quite theoretical it is important to understand the mechanics behind it. As a trader or an investor you need not actually worry about how the trades are cleared and settled as there are professional intermediaries to carry out this function seamlessly for you. However the lack of understanding of the clearing and settlement process could leave a void, and would not give a sense of completeness to the learning process. Hence for this reason we will explore what happens behind the scene from the time you buy a stock to the time it hits your DEMAT account. We will keep this very practical with a clear emphasis on what you as a market participant should really know. 10.2 – What happens when you buy a stock? Day 1 – The trade (T Day), Monday Assume on 23 rd  June 2014 (Monday) you buy 100 shares of Reliance Industries at Rs.1,000/- per share. The total buy value is Rs.100,000/- (100 * 1000). The day you mak...

9.1 – Overview When a market participant wants to transact in the market, he can do so by opting one of the options: Call the stockbroker, and trade usually called “Call & Trade” Use a web application like Zerodha Kite on a computer browser to access the markets Use the trading software like Pi Each of the above methods is a gateway to the exchanges. The gateway allows you to do multiple things such as transacting in shares, tracking your Profit & Loss, tracking market movements, following news, managing your funds, viewing stock charts, accessing trading tools etc. The purpose of this chapter is to familiarize you with the Kite(or a similar web platform), and its interface. You can access the trading terminal(TT) by simply entering the URL on your browser.  For Zerodha Kite, it is kite.zerodha.com. It is quite a user-friendly interface, as most of its functionalities are menu driven. To access the trading terminal, you need to have a trading account with yo...

The objective of this chapter is to help you learn some of the common market terminologies, and concepts associated with it.   Bull Market (Bullish)  –  If you believe that the stock prices are likely to go up then you are said to be bullish on the stock price. From a broader perspective, if the stock market index is going up during a particular time period, then it is referred to as the bull market.   Bear Market (Bearish)  –  If you believe that the stock prices are likely to go down then you are said to be bearish on the stock price. From a broader perspective, if the stock market index is going down during a particular time period, then it is referred to as the bear market.   Trend  –  A term ‘trend’ usually refers to the general market direction, and its associated strength. For example, if the market is declining fast, the trend is said to be bearish. If the market is trading flat with no movement then the trend is said t...