The ultimate wealth creator
Many retail investors buy stocks which have some corporate governance issues just because they are trading at cheaper prices after the heavy selling. But they don’t understand that catching a falling knife is the biggest mistake which they are doing. In such cases, those stocks closes Circuit-to-circuit on consecutive days destroying huge capital of investors. … Read more
In Indian share market Harshad Mehta and Ketan Parekh Scams have forced Stock Exchanges to be very stringent about their rules and regulations. To protect the interest of Investor, maximum use of technology and minimum interference of human was needed. Through their NEAT and BOLT screen-based trading system NSE and BSE respectively, achieved this to … Read more
What is Margin? Margin is the difference between the total value of securities held in an investor’s account and the loan amount from a broker. Borrowing on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and … Read more
Risks involved in Clearing and Settlement process of the Secondary Market are removed by implementing proper Risk Management System. NSCCL provides a transparent clearing and settlement system with no counter-party risk. It has created some frameworks and norms for its members based on some risk containment aspects. Risk containment includes: Capital Adequacy Requirement Stringent Margins … Read more
Author: Ravi Patel Pages: 224 pages Publisher: Buzzingstock Publishing House; 1st edition (1 May 2010) Language: English Table of contents: Stock Market Basics Introduction to Stock Market Analysis Basics of Technical Analysis Introduction to Candlestick Introduction to Chart Patterns Introduction to Technical Indicators Technical Analysis Steps Stop Loss Theory Stock Selection Strategies Case Studies of Technical Analysis Source … Read more
There are two types of risks in settlement system. Counterparty risk System Risk 1) Counterparty Risk Counterparty risk arises if parties do not discharge their obligations fully when due or at any time thereafter. These have two major components, replacement cost risk prior to settlement and principal risk during the settlement 1.1) Replacement Cost … Read more
Several entities are involved in the process of clearing. These are clearing corporation, clearing members, custodians, Clearing banks, Depositories etc. Lets study the roles of each of these entities. Clearing Corporation The clearing corporation is responsible for post-trade activities such as risk management and clearing and settlement of trades executed on a stock exchange. The … Read more
Clearing refers to the process of comparing trades before settlement date or the determination of the net obligation of the broker participants (for both securities and cash) The settlement process refers to the exchange of cash and securities on the contractual settlement date. The settlement date can be agreed upon at trade execution or can … Read more
What are Auctions? Auctions are initiated by the Exchanges on behalf of trading members for settlement-related reasons. If a Trade happens today (T-day), the settlement of shares takes place on (T+2) days. In some cases, due to some reasons, the obligations of delivery of shares fails. The main reasons are shortages, bad deliveries, and objections. … Read more
Using the Screen Based Trading System (SBTS), an Investor enters a trade in the computer system. Depending on the type or order the order gets stacked in the corresponding Order book. If a perfect match is found the order gets executed which results in a trade. Let’s understand the entire process after Order placement. Order … Read more
