What are Financial ratios A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements . Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. There are mainly three parameters for stock market analysis such as balance sheet, Cash flow statement and financial ratios. It is widely believed that analysing ratios are difficult or tricky but I can promise you after reading this article you will find financial ratios more understandable compare to the other two. 9 most important ratios that matter while buying a stock PE ratio =Share price/earning per share , what the market is willing to pay for a stock based on its past or future earning. In other words how many years will it take to recover the initial investment amount in the stock, for example, the st...
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 ...