Author: Team-Bidasked

Algorithmic trading is a technique in which computer programs automatically execute trades based on predefined rules and algorithms. these algorithms use parameters such as price, volume, timing, quantity, and other market conditions to make trading decisions. it is commonly known as automated trading or algo trading. The primary aim of algorithmic trading is to maximize trading efficiency, minimize human intervention, and exploit trading opportunities at speeds far beyond manual trading. this method is predominantly used by institutional investors and large hedge funds, while retail traders also participate using broker supported algorithmic platforms and tools. Algorithmic trading is notable for its…

Trading is one of the most important activities in the stock market, where market participants buy and sell financial instruments such as shares, indices, derivatives, or commodities with the objective of earning profits from price movements. while long term investing focuses on gradual wealth accumulation, trading generally aims to capitalize on short term to medium term price fluctuations and heavily depend on market timing, price action, and technical analysis. The primary objective of traders is to leverage market dynamics by timing their entries and exits based on momentum, volume, patterns, and trends. depending on the strategy applied, trading may last…

Technical indicators are analytical tools that help traders to forecast future price direction based on past price movements in stocks, currencies, and commodities. They are a key component of technical analysis, assisting traders and investors in identifying the right moments to buy or exit positions to achieve higher profitability. Technical indicators help market participants to analyze price behaviour, momentum shifts, trend direction, and potential reversals. traders who apply indicators without distinguishing between leading and lagging ones often fall into the trap of entering trades blindly, resulting in poor outcomes and false indications. recognizing how indicators work and using them according…

Price action trading is a trading strategy that focuses on price movements, chart patterns, support & resistance levels, and candlestick formations to understand market sentiment and anticipate future price movements. in this approach, a traders decision making is based on primarily the historical movement of price over time, rather than depending on other technical analysis methods that heavily depend on complex indicator systems to predict future price direction. In price action trading, traders use clean, uncluttered charts often known as “naked charts”. traders primarily use candlestick charts because they clearly show OHLC data and reveal momentum as well as market…

Technical analysis is the art of forecasting future price movements by analyzing past price data and understanding the forces of supply and demand reflected in market prices. by studying historical price movements and trading volume, traders attempt to estimate the probable direction of stocks, commodities, and other financial instruments, which helps in making informed trading decisions. technical analysis visually presents market information like price movements and trading volume through charts. by applying various chart patterns and technical indicators to these charts, traders can identify trends and anticipate potential future price movements. Technical analysis is a powerful tool that not only…

The stock market is a marketplace where stocks or shares, along with other financial instruments such as bonds, mutual funds, and derivative contracts, are bought and sold through stock exchanges. it plays a crucial role in the global financial system by helping companies to raise capital and enabling economic growth, making it an important pillar of modern economies worldwide. When a company wants to grow its business, it raises funds by selling a part of its ownership to the public through shares. investors who buy these shares become co-owners of the company and can benefit from its growth and profits.…

Margin trading facility (MTF) is a service offered by stock brokers that allows investors to purchase securities by paying only a fraction of the total transaction value upfront, while the broker finances the remaining amount at a specified interest rate. this facility essentially provides leverage to traders, enabling them to take larger positions in the market than their available capital would normally permit. In india, upfront margin requirements are regulated by SEBI and are determined based on the risk and volatility of individual stocks. under the margin trading facility (MTF), brokers typically offer leverage ranging from 2x to 4x, depending…

Before understanding the concept of the capital market and the money market, it is essential to first understand the financial market. the economic progress of any country largely depends on the effectiveness of its financial system. a financial market is a broad system where where buyers and sellers come together to trade financial instruments such as stocks, bonds, commodities, derivatives, currencies. financial markets consist of various components, among which the capital market and money market are two important part of financial system. both markets facilitate the flow of funds & support economic activities, but they are distinct in their purpose,…

Support and resistance are core principles of price action analysis, acting as a important elements in technical analysis that help traders to identify key price zones where buying & selling pressure consistently appears. these zones represent areas where the equilibrium between demand & supply changes, and leading prices to pause, rebound, or reverse direction. such zones work as important technical & psychological barriers, helping traders to identify potential entry points, exit levels, and risk management areas. support acts as a price “floor” where buying pressure increases, and stopping prices from falling further, while resistance acts as a “Celling” where selling…

A stock exchange is a regulated marketplace designed to facilitate efficient transactions between buyers and sellers. it is an essential part of stock market where buyer and seller meet in virtual environment to execute securities transactions. it acts as a bridge between companies that need capital & investors who want to grow their wealth. basically, a stock exchange is the heart of the financial market where securities such as stocks, bonds, ETFs and other financial instruments are bought & sold. this platform allows investors to trade shares of publicly listed companies in a regulated market. without a stock exchange, it…