Author: Team-Bidasked
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 would…
Exchange-traded funds (ETFs) are among the most popular & rapidly expanding investment instruments in today’s financial markets. Exchange traded funds are popularly known as ETFs, are investment instruments manage by asset management companies in which investors pool their money to track an index, commodities, or a basket of underlying assets. ETFs are similar to index funds in the sense that their portfolios reflect the index they track. They deliver the advantages of both mutual funds & shares, allowing investors to enjoy diversification, transparency, flexibility, and cost efficiency in a single product. ETFs can be bought or sold in real-time on…
The securities and exchange board of India, popularly known as SEBI, was established in 1988 and was given statutory powers on 12 April 1992. The headquarters of the securities and exchange board of India is located in Mumbai, and the chairman is appointed by the central government of India. SEBI acts as the regulatory authority for India’s securities market, with the primary objective of protecting investor interests and ensuring fair, transparent, and efficient functioning of the stock market. Over time, the Indian stock market has expanded significantly, and SEBI has played a important role in shaping it into a reliable…
The put call ratio (PCR) is a well-known indicator used by investors and traders to measure the market sentiment. It is primarily derived from the options market and is calculated using either trading volume or open interest of put and call options. By comparing the total volume or open interest of the put options with the total volume or open interest of the call options over a specific time period, helping traders to gauge whether market sentiment is leaning towards a bullish or bearish. The put call ratio (PCR) can be calculated by using either trading volume or open interest. When…
The commodity market is a financial marketplace where raw materials and primary goods, known as commodities, are bought and sold. Similar to the stock market, the commodity market also includes buyers & sellers. In the stock market, traders and investors trade in shares, whereas in the commodity market, traders and investors trade in commodities such as gold, silver, crude oil, copper, nickel, rice, wheat, and many more. The majority of commodity trades are executed through spot and derivatives markets. Commodities in the spot market are bought and sold for immediate delivery at existing prices, whereas the derivatives market deals in…
Forex trading is the process of buying and selling of currencies in the foreign exchange market. The forex market is the largest and most liquid financial market in the world, generating daily trading volumes worth trillions of dollars. It attracts a wide range of market participants due to its high liquidity, easy accessibility, and flexible trading hours. In the forex market, currencies are traded in pairs, where each pair consists of two currencies. The first currency is known as Base Currency, while the second currency is called the Quote Currency. Some common examples of currency pairs include:- Sr. No.Currency PairBase…
Blockchain technology is one of the most revolutionary innovations of the 21st century that enables secure, transparent, and decentralized recording and sharing of information across a computer network. Initially developed to support cryptocurrencies such as bitcoin, blockchain technology has since expanded into various sectors, including e-commerce, finance, supply chain management, and many other industries. Blockchain is a decentralized distributed ledger system that records transactions across computer networks and each transaction is stored in blocks, these blocks are linked to the previous block in a sequence to formed transparent and tamper-resistant record. Compared to traditional databases managed by a central authority,…