Order Flow

What is Order Flow 

Trade Order means various types of orders which can be placed on stock exchanges for financial assets like stocks and futures contracts. It consists of instructions to a broker/brokerage firm to purchase a financial asset on behalf of investors. Execution of order goes through series of sequential steps before the completion of a transaction. Order flow analysis helps in recognizing the final details of buying and selling volume. Order flow analysis helps in predicting with a good amount of certainty where order imbalance awaits at a future price level. (more…)
Stock Index

Stock Index

Stock index

What is a stock index? A stock index is an index that measures the stock market of a particular country and with the help of various statistical measures, we can know the change that took place in the stock market. The stock indices of any country represent the value of various securities that have been listed on the stock exchange and they are group together to form an index. If any change occurs in the price of a particular security that is included in the stock index the value of it may increase and decreased in accordance with the change in the price of the security. The group of securities that are included in the index is made on some common criteria like the same industry, market capitalization, size of a company, and so on. (more…)
circuit breaker

Circuit Breaker

Circuit Breaker

A circuit breaker is a safety feature that prevents significant price fluctuations in a short period of time. When the price changes above or below the cap, trading on the market is stopped. Circuit Breakers are placed to curb panic-selling. They are used in broad market indexes, such as the S&P 500. They are also used for individual securities. (more…)
Market Cycle

Market Cycle

Market Cycle

The emergence of trends or patterns during different markets or business environments is referred to as a market cycle or a stock market cycle. It is a period of movement from highs to lows. The movement is from increasing prices, strong performances, and bullish markets to weak performances, falling prices, and bearish markets and then back to bullish markets. The stock price during the movement rises initially then falls down and rises again. (more…)
Exchange-Traded Derivatives

Exchange-Traded Derivatives

Exchange-Traded Derivatives

Derivatives refer to the financial instruments which derive their value from the underlying assets, security, index, or commodity, traded on organized exchanges or in the over-the-counter markets.  It is a contract between a buyer and a seller concerning an agreement to be fulfilled at a specific point in time. That being said, as Exchanges migrate towards fully electronic structures, there is far less differentiation between Exchange-Traded and OTC markets.

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What is Face Value?

What is Face Value?

What is Face Value?

It is essential to be aware of the various terminologies used in stock markets before commencing the trading journey. The Face value is one such important component that is used in the calculations of investment securities such as bonds and stocks. Let us understand its meaning and the crucial role it plays in the stock market. (more…)
Equity-Linked Note

Equity-Linked Note

Equity-Linked Note

What is Equity-Linked Note (ELN)? An Equity-linked Note is a structured debt instrument. It refers to an investment instrument that provides return linked to the performance of underlying equity instead of the fixed interest rate. The equity tied to an equity-linked note can be a single security, group of securities, or a broader market index. It differs from other debt instruments which provide fixed interest on fix schedule to the investors. (more…)
Market Timing

Market Timing

Market Timing?

Market timing, it is a type of the strategy used by the marketers and investor for the buying and selling of shares and various financial securities that are been traded to take advantage of future change in the price of the stock and securities on a particular time period. Market timing strategy basically gives the investor an idea about the future scenario of market trends and economic performance and their impact on the price of various securities. (more…)
Order Driven market

Order Driven Market

Order Driven Market

Order driven market consists of a constant flow of buy and sell orders from market participants. There are no designated liquidity providers but are more transparent than the quote-driven market. By comparison, in quote driven market, designated market makers provide bids and offer that other market participant may trade on. Stock exchanges like the New York Stock Exchange and the Nasdaq are seen as hybrid markets—a combination of both order and quote driven markets. (more…)
Fill or Kill Order

Fill or Kill Order

Fill or Kill Order

Fill or kill (FOK) order is a time-in-force conditional type of order used when trading securities that instructs a brokerage to execute a transaction either immediately and completely or not at all. Most often these type of orders are used by active traders and is usually for a large quantity of stock. It is an order to purchase or sell stocks that must be fulfilled instantly in its entirety; else, the complete order would be canceled. (i.e., no partial execution of the order is allowed). (more…)