Learn all about Share Market
What is Momentum Trading: Meaning, Strategies, and How It Works
3 January 2025 | 7 mins read
Designed to take advantage of continuing market trends, momentum trading is an efficient trading strategy that assists traders in realising price shifts, helping them achieve profits. The strategy of momentum trading works on the principle that the momentum of a price trend - its likelihood to continue in its present direction, either upward or downward - can be effectively leveraged to gain substantial profits. Typically, such an approach to trading involves analysing shifts in price as well as volumes in trading. This is primarily done to determine the sustainability and strength of any market trend.
P/B Ratio: Price-to-book Ratio: Meaning, Formula & Limitation
3 January 2025 | 6 mins read
The Price-to-Book (P/B) ratio is a key metric in stock market analysis that helps with the assessment of a company's valuation relative to its book value.
Difference Between Online Trading and Offline Trading
3 January 2025 | 7 mins read
Stock trading has evolved drastically. It has transitioned from traditional broker-assisted transactions to convenient, user-friendly online trading platforms. The choice between online trading and offline trading depends on individual preferences, access to technology, and trading goals. Understanding their differences, advantages, and limitations can help new investors, like you, make informed decisions.
What is Arbitrage Trading and How Does it Work?
3 January 2025 | 6 mins read
Arbitrage trading is a financial strategy that involves buying and selling an asset simultaneously in different markets to exploit price differences. This practice ensures low-risk profit by leveraging discrepancies in market pricing. While it requires speed, precision, and market knowledge, arbitrage plays a crucial role in improving market efficiency by balancing prices across platforms. Here’s more about what arbitrage trading is and how it works.
What is the U.S. Dollar Index: Meaning & How It Works
2 January 2025 | 7 mins read
Shape The U.S. Dollar Index (USDX) is a critical financial indicator that measures the value of the U.S. dollar against a basket of six major world currencies. It plays a vital role in global finance, providing insights into the dollar's strength or weakness relative to other currencies. Understanding the USDX is essential for traders, investors, and anyone involved in international finance, as it affects everything from currency markets to global trade. This article will explain what the U.S. Dollar Index is, how it works, and why it matters in today’s economic landscape.
What Is USD INR Trading & How to Trade in USD INR
2 January 2025 | 6 mins read
USD/INR trading is the practice of buying or selling the Indian Rupee (INR) against the U.S. Dollar (USD) in the foreign exchange (Forex) market. This trading pair is widely used by investors, traders, and businesses for currency hedging or speculative purposes. Understanding how USD/INR trading works, the factors that influence the exchange rate, and the trading strategies involved is crucial for anyone looking to engage in this market. In this article, we will explore the workings of USD/INR trading, its benefits, challenges, and how to trade this currency pair effectively.
Silver ETFs Explained: Meaning, Key Features, and Taxation
3 January 2025 | 7 mins read
Precious metals like gold and silver have always held a place of privilege in India, both as an auspicious holding and also as a form of investment. Silver ETFs (Exchange-Traded Funds) are specialised investment instruments designed to track the price of silver. They offer you an opportunity to gain exposure to the metal without the complications and expenses of owning it physically. These funds combine the advantages of liquidity, transparency, and affordability, making them popular among investors seeking diversification and a hedge against economic volatility. This comprehensive guide explains how Silver ETFs function, their features, tax implications, and regulatory aspects to help you understand their role in a well-rounded investment portfolio.
What is a Gold ETF Fund? Meaning, Features & Taxation
2 January 2025 | 7 mins read
Investing in physical gold has been a mainstay in the financial world in India, with a range of society’s strata putting their faith in the metal for its benefits of beauty and liquidity. However, if you are wary about investing in physical gold due to its many challenges today, you may consider a gold ETF or gold exchange-traded fund. Gold ETFs are passive funds, and they can be considered if you want to invest in a potentially highly profitable metal - gold - without the stress of owning physical gold. Just think of how you would invest in stocks in a mutual fund, and you will understand how you can invest in a gold ETF.
What is ISIN (International Securities Identification Number)?
2 January 2025 | 6 mins read
Shape The International Securities Identification Number (ISIN) is a unique identifier used globally to standardize the identification of financial securities. Whether it's stocks, bonds, or other tradable assets, ISIN plays a critical role in simplifying and ensuring accuracy in trading and record-keeping across borders. By offering a globally accepted framework, ISIN eliminates confusion arising from varying naming conventions and codes used in different markets. This comprehensive system helps investors, financial institutions, and regulators maintain transparency and efficiency in the global financial ecosystem.
What is Swing Trading and How Does it Work?
2 January 2025 | 8 mins read
Typical behaviour of stock market prices is reflected by highs and lows, and swing trading tends to capitalise on this pattern. Movements in stock prices dictate certain trading strategies and swing trading concentrates on the direction of any stock’s momentum and identifies potential spots where the momentum tends to travel. Swing trading, while gaining fame, seems relatively less familiar to investors than day trading. Still, it deserves to be known as it can assist traders in achieving substantial success in the financial markets. It offers a distinct, yet common-sense approach to trading, far removed from the conventional rapid pace and volatility of day trading. Delving into swing trading is of the essence since investors can potentially make money and mitigate risks.
What are Value Stocks and How to Identify Them
3 January 2025 | 8 mins read
For investors looking for a balanced way to invest in the stock market, value stocks tend to provide positive solutions. Value stocks are stocks of certain companies, perceived as undervalued by the market. The companies yielding value stocks portray sound financial metrics and strong fundamentals. However, stocks of such companies trade at a lesser price relative to their intrinsic value. Nonetheless, spotting stock with low value isn’t the only way to go about investing in value stocks. Investors should be aware that value stock investment is a long-term strategy of investment that translates to identifying undervalued businesses and holding stock patiently, till the true value of the stock is realised. Benjamin Graham popularised the technique of value investing when he mentioned it in his book, “The Intelligent Investor”. Furthermore, Warren Buffet, an ardent student of Graham, has followed the value investing strategy, making him one of the richest men in the world today.
What are Multibagger Stocks and How to Find Such High-Growth Investments
2 January 2025 | 8 mins read
In the share market today, different kinds of stocks appeal to a variety of investors looking to enhance their financial portfolios. Multibagger stocks fall under the purview of equity shares of any company that trades at an especially low rate, but potentially yields high returns in the future. So, when you buy them, they may be cheap, but if you are a patient investor, they can give you extremely high returns relative to the price at which you bought them. Famous stock specialist Peter Lynch coined the term “multibagger stocks”, mentioning them in his financial bestseller, “One Up On Wall Street”.
Options Trading for Beginners: A Comprehensive Step-by-Step Guide
2 January 2025 | 8 mins read
Options trading is a method quickly catching on as a popular way of trading assets, posing minimal risks and potentially maximal returns. Options trading engages in trading with derivative contracts. By using options contracts, traders and investors can buy or sell an underlying asset, determined in a contract /agreement. The buyer may buy an options contract at a specific price on a certain predetermined date, and a seller may sell an options contract at a certain price on a pre-set date. This is the basic working of options trading. As a beginner, you need a comprehensive step-wise guide to get you on the right track. Read on to grasp options trading.
What is the Strangle Option Strategy?
3 January 2025 | 8 mins read
Investors often wish to try different trading strategies but anticipate the worst outcomes and back out. However, if you are an enthusiastic trader who wishes to enter the world of futures and options trading, you could find yourself in lucrative positions if you study certain strategies like the strangle option strategy. This involves the buying and selling of both call and put options and aims to make the most of price shifts in either direction. Even if you are a novice in the world of trading, you can always read this article and try strategies with small amounts of capital till you gain a sufficient grasp of the method based on experience.
Difference Between Bulk Deals and Block Deals in the Share Market
24 December 2024 | 6 mins read
Different types of transactions take place in the share market everyday. While stock trading is an exciting activity for many investors, it must be backed with knowledge for investors to prosper. Hence, as an investor, you should know about some of the most crucial transactions in the stock market, namely, bulk deals and block deals. While investors use the terms interchangeably, they represent two different concepts. In this article, the differences between bulk and block deals are delved into so you can likely learn to make educated investment decisions.