Trade Validation

Trade Validation

Trade Validation

 In the financial market, a trade is the conversion of an order placed on the exchange which is said to be completed when the buyer gets the securities and the seller gets the payment for the same. There is a number of steps involved in the successful completion of the trade. All the steps together create a 'Trade Lifecycle'. The Trade lifecycle consists of various trading and operational activities. Once, the trade is captured and enriched, the next step is of validating the trade to reduce the possibility of errors in the process ahead. (more…)
Equity market

Equity market

Equity market

An equity market is a market during which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also referred to as the stock exchange, it's one among the foremost vital areas of a free enterprise, it gives companies access to capital to grow their business, and investors a bit of ownership during a company with the potential to understand gains in their investment supported the company's future performance. (more…)
Market Sentiment

Market Sentiment

Market Sentiment

What Is Market Sentiment? The general prevailing attitude of investors as to anticipated price development in a market is called Market Sentiment. It is the overall attitude of an investor towards the financial market. It basically defines the investor's outlook towards particular securities. (more…)
Short Squeeze

Short Squeeze

Short Squeeze

If we want to know about Short Squeeze, Firstly we need to know the Short selling. Short selling is an investor or trader or seller basically borrowing the stock from a broker or lender and sell the stock, when the price of stock fall again he buy back the stock and return it to the stockbroker or lender, for lending the stock lender or broker charges interest for that short period. For some reasons the stock price increases the margin call forces the short seller to close his position to protect from the very downside. (more…)
FALLEN ANGEL

Fallen Angel

FALLEN ANGEL

What Is Fallen Angel The fallen angel is a term used in finance to describe an organization that was given an investment-grade status but due to its declining financial condition, the organization had been reduced to junk bond status. The fallen angel is also used to describe stocks whose price has been reduced drastically from the all-time high position. (more…)
Cyclical Stocks

What are Cyclical Stocks?

Cyclical Stocks

There are certain stocks in the stock market that function in relation to the economic/business cycles. They are known as called "Cyclical Stocks." The cycles of the economy cannot be controlled by investors, however, their investment strategies can be tailored to its rise and fall. There is a myriad of different companies listed and traded every day in the stock market, and the stocks of these listed companies can be classified broadly into two categories: cyclical stocks and non-cyclical stocks. Let's look a little further into cyclical stocks and try to understand the investor's effect and how they do it. (more…)
Correlation in Financial Market

Correlation in Financial Market

Correlation in Financial Market

In statistics, correlation means two or more variables moving together. Correlation in financial investment industries is the relation between two financial securities moving with each other statistically. It is computed as the correlation coefficient which has the value that must fall between -0.1 to +0.1. The relationship strength of the two variables is demonstrated by the correlation coefficient and expressed numerically. A positive correlation indicates movements in the same direction & a negative correlation indicates movement in opposite direction. There are various types of correlation in financial industries used to relate two or more financial securities they are - Inverse correlation, cross-correlation, multiple correlations, etc. (more…)
Direct Market Access

Direct Market Access

Direct Direct Market Access

The essence of the exchange is its Electronic Systems, a mechanism that compares a purchase order and a sell order against a bid and ask price to establish a trade. Electronic systems are used to different extents for trading in financial markets, varying among markets, across forms of transactions and clients, and between the different phases of the trade process. Presently traders trade securities by placing the order directly on stock exchange order books and electronic communications network brokers (ECNs) via Direct Market Access (DMA trading). DMA encourages traders to become market makers instead of price makers. (more…)
Market Index

Market Index

Market Index

Market Index, also known as a stock index, is a statistical measure that represents the changes taking place in the market. A few similar stocks among the securities listed on the exchange are grouped together and it is taken as a sample to represent the performance of the whole market. In simple words, this sample is known as an Index. Change in prices of underlying securities ( stock, bond, currency, or commodity on which derivative instruments, such as futures, ETFs, and options, are based) impacts the overall value of the index. If there is a rise in price the index will rise, and if they go down, so will the index. (more…)
Good Till Cancelled (GTC) order

Good Till Cancelled (GTC) order

Good Till Cancelled (GTC) order

Good Till Cancelled (GTC) order as the name suggest remains valid until it is not canceled by the investor or it expires on the close date. This order allows customers to place purchase and sell orders for which request instructions remain valid with set time intervals. The maximum validity of a Good till Cancel order is 365 days. This order may be made by an investor seeking to buy or sell a security at a certain price. (more…)