Financial Oracle

Quants trading is a strategy that uses complex statistical and mathematical function using automated trading. This model heavily relies on the dataset of price, time, the volume of the stock. what is  Quants trading It uses the historical volatility data of the stocks and recognizes the patterns for a particular stock, sector, index, etc. It is a very complex procedure and can only be done with advanced computers and superfast internet and most importantly different types of analyst that can read the data and make patterns. Everything in this world has patterns be it anything stocks, economy, business, etc. Quants analyst research for months and then come up with a strategy of buying and selling while the base of their research is historical data. After doing their research they develop several different models and test them on the virtual stock market and the model that gives the highest return is selected for trade. History Quantitative finance has a long history and a list of gr...

The algorithmic trading is computer codes that buy and sells when it sees the market is complying with its coding functions. What is Algorithmic trading Algorithmic trading is simple it is just like just we set up an alarm on a smartphone just like that an algorithmic trader(AT) will set some functions on price, time, volatility, etc. If any of these functions have met the market condition then the buying and selling of stocks will take place. for example, I set three programmes that I will buy a TATA motor if the price is at 100 rs per share on market timing and when delivery of stocks is 35%. So if price hit at 100 and delivery is 39% then the order will be rejected it will only be executed when all the programmes met the condition similarly for selling. How much time does it take to execute an order, well a typical AT can trade at least 1 million transactions in a minute. So even if their margin is as low as 1 rs they can still make a fortune. HISTORY    It does not have a ...

  Intraday trading a buying and selling of financial instrument on the same day of the stock market, These contracts evolved with the information and communication technology segment developments. What is intraday? It a simple contract between buyer and broker, A trader has a deemat a/c at angel broking, the trader wants to trade 10000 rs worth of stock so angel broking will buy 10000 rs of stocks on behalf of the trader and the trader has to give a required margin for 20%  if the stock fluctuation break the threshold of 20% then the trader has three options is to sell the contract, to provide more margin or to convert the order into delivery. Intraday typically runs on a simple rule and that buys low and sell high but there are no hard and fast rules for the financial market that you can learn and earn money. Intraday trading riskier because a person jeopardises their investment amount which is not at all advisable at the beginning level, So if anyone ever asks you to do intr...

Ever since the lockdown has lifted its a million dollar question that everyone is asking, we should analyse the market and then decide. Analysis If you have not read my previous article about mutual fund then please read it will help you understand better how mutual fund industry function. before lockdown that is 24 march mutual industry was doing fine, there was routine subscription in the form of a systematic investment plan(SIP). After the announcement of lockdown, everyone went on a sell spring and the stock market collapsed debt-based mutual fund like Franklin Templeton have to shut their business in India due to losses. The important question is why this happens.    Only 6-8 mutual fund gives a 2 digit annual return but when you consider the expense ratio the return will decrease  by1-2%. This is the most important reason why everyone is selling their stake in mutual fund and starts trading in the equity cash market. Subscription of mutual funds has decreased but tr...

  Equity means ownership in the stock market when you buy an equity stock you are becoming a member of the company, You can trade your ownership daily in many forms such as intraday, margin, etc. What is  In the previous article, I have written about the types of trading instruments in the stock market, Today I will explain about equity, Well I have already written how the Equity market came in the existence and what is their role in the financial world, and how they work. The only thing for today is how many types of trading are there on equity. Intraday trading Short selling Collateral High-frequency trading Quantitive trading  These formats are used for trading and not for investing Intraday is a contract in which a trader borrows the amount of the stock that they may be buying and only give a required margin, the specification of the contract is that the broker will lend money for only one day that is if you buy stock in the morning for a given price then in the even...

  The financial market is an ocean of money and those who understand it can draw few mugs for them but for that, we must know the types of trading instruments in the financial market.   What are trading instruments of financial market There are 6 trading instrument in the financial market Equity Index Future Option Commodity Forex I have written about how equity market function and what is a role in the financial world if this is your first article then please read my old articles. There are many types of trading strategies in equity such as intraday, Margin trading, and short selling. The index is a benchmark that shows how our financial markets are doing, Nifty and Sensex are indexes which does not have any value. there are many formulas for calculating the price of an index. these benchmarks are very important and over the years as our financial market has developed so did our indexes now we have more than two dozens of indexes and debt funds who only trade and invest in ...

What is a mutual fund?

What happens when you buy or sell a stock? Who facilitates the transaction? You won’t believe how simple the stock market is after reading this article. There are two types of a market which is as follows. Primary market Secondary market A primary market is a place where initial investment takes place. A secondary market is a place where buying and selling of stock take place. Let's assume Alpha ltd wanted a fresh investment of 10 crores from the equity market so they have to choose a brokerage such as an angel broking(I'm a sub-broker at angel broking)the brokerage firm will value the stock price of the company and the number of shares required for 10 crores now let’s assume that the price for the initial public offer, is 1000 and the minimum investment is 50000. That means Alpha ltd will issue 1 lakh shares in the primary market for sale which will trade later in the secondary market. This is quite basic what people don’t tell everyone is that a company does not list all the ...

what is the stock market? National stock exchange. A simple breakup of both words, Stock is a particular good of the company, for example, hero moto corp has 1000 motorcycle so their stock is 1000, a Market is a place where buyers and sellers transact for goods and services. Its simple right stock market is like any other market now we only need to understand what kind of goods and services are up for sale and purchase. First stock exchange Until the emergence of the stock market an entrepreneur has to take a loan from a moneylender for expansion or for starting of the business and has to take all risk by himself/herself and had to pay huge amt of money in the form of interest.but all that changed when the  Stock market was invented in Amsterdam when dutch east India company needed fresh investment for colonizing the new world(India, China, etc)they farm raw material in the new world and manufacture goods in Europe and then again sell them to the new world, the company wanted inve...