Posted on 18th Mar 2016
Need help choosing a broker?
Who are the Stock Brokers?
Stock Brokers are the registered members of Indian stock Exchange ( NSE, BSE, MCX etc.) and are regulated by SEBI. Brokers are the trained and certified agents between trader and stock exchange who assist in buying and selling shares, derivatives (Futures and Options) and other financial instruments. They charge commission or brokerage for their service.
Who can open an online trading account in India?
All resident Indians above the age of 18 years are eligible to open Online Trading account. Trading account can be opened for Individuals, Sole Proprietor, HUF, NRI, Trust and Company.
What is CNC means?
CNC is used for short term of Cash and Carry. It is an option you choose from product type list while trading for delivery trades. It means if your intention is to buy and hold the shares for some time says few days or months or years then you need to choose CNC to ensure the shares reside in your demat account.
What is 'Intraday'?
'Intraday' (MIS) is a facility which lets you to take positions in shares without taking delivery. You square off the positions on the same day before a pre-defined time. Profits, if any will be credited on T+2 working days. Loss, if any will be debited on the same day.
How do I place an 'Intraday' buy/sell order?
Select MIS(Margin Order) or NRML(Normal Margin Order) if you want to trade intraday. You can click on Buy/sell button and select MIS as product in the order form to place the order. You should have adequate limits under margin segment before placing an intraday order.
Is there a time limit within which I am supposed to square off the position I have taken today?
Yes, the 'Intraday' positions should be squared off latest by 3.10 pm. If you do not close the position for any reason, your broker will square it off. The end time is subject to change as per broker's policies.
What is Market Watch?
Market Watch is a page that populates at first when you start using trading software for trading. Here you can load the stock you are interested in to track all the relevant information of that particular stock. Some of the basic information on market watch is - Last Traded Price of the Stock (LTP) , Previous day close price,% change, Open, High, Low and close (OHLC) for the current day and volumes.
What is Order Book and Trade Book?
The order book and trade book are like two online journals that help you keep track of your order placed and the trade performed during the day. In an order book, you can view the order you have placed to buy or sell any stock. Trade book gives you a picture of the trade that is already been executed. Once the order has been processed and the trade has been executed, the trade details will be available in the trade book.
What is the use of order book?
Order book holds all the details of your order. You can double check the details like quantity, price, order type, product type. You can also modify or cancel your order by using option right below the order book. You can also check the status of your order if it is still open or completed or rejected.
What is Span Margin?
Span margin also called as Maintenance Margin is the upfront margin specified by the Exchange at the order stage in F&O segment.
What is Exposure margin?
Exposure margin is the margin that is collected in addition to the Span margin by the Exchange. Exposure Margin is collected as per the broker's requirement.
What is Initial margin?
Initial margin is the margin that is collected upfront at the time of taking a position in Futures. It is sum total of Span margin plus Exposure margin. The value of Initial Margin changes every day as it depends on the Futures Price.
- Initial Margin = Spam Margin + Exposure Margin
- Span margin=% of contract value
- Exposure Margin = % of contract value
- Contract Value=lot size* futures prices
What is M2M or Marking to Market?
Mark to market (M2M) is a simple accounting procedure which involves calculating the profit or loss you have made for the day in the future contract and crediting or debiting the amount into your account. The previous day close price is taken into consideration to calculate the present day M2M.
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