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Showing posts from October, 2020

How to earn easy money

  Easy money multi commodity exchange(mcx) has many derivatives contracts of farm produce, metals, precious metals and energy. It's not easy to predict a price of precious metals but the beauty of these financial instruments is that they never break their historical volatility index meaning that within their price band a person can earn money just by investing in the morning and reversing the trade at the end of the session. the session begins at 9 a.m in the morning and ends at 11.30 pm in the night, yes the market is open for the entire day, so it not only for the early risers even the afternoon risers can earn some easy money from this method. Let us take gold guinea which is a futures contract on mcx whose underlying asset is 8 grams of gold you can see that gold has dropped on Monday and since then has been pretty much stable now how can a person capitalise on price fluctuations. the price fluctuation for this contract is 300-450 that means if its prices are fallen for 300 rs ...
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Futures

 What are the futures contract? In a simple words futures contract is a derivative instrument which is obligated to buy or sell a commodity on a predetermined rate at a determined time and quantity. Derivative contract means that it has no value of its own but the value of the underlying asset. An underlying asset can be anything Stocks, Commodity, Currency, etc. History of the futures contract   Futures contract came into existence in the 17th century by the Dutch empire who were the pioneers of financial markets but the dutch case of futures is not relevant today so we may skip that. The first modern Future contract was executed in 1972 for agricultural commodity price swings. It was created to help instituional investors mitigate price volatility and when the agricultural market flourished metal and crude market demanded because after the 1973 oil embargo it become as necessary to a economy as oxygen is to human. You can see how successful was this venture and now the major...
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Algorithmic trading

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 ...
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INTRADAY

  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...
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EQUITY

  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...
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