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Have more questions about the stock market? These are the top questions we get most often:
Stocks can be a powerful tool for wealth building, since they are a part of a company's ownership. Stock shares can offer great potential for monetary gains. Stocks of fundamentally sound companies will make your money work harder because they increase in value over time and offer rich dividends.
The stock market allows traders to trade a variety of instruments. These include options, shares, mutual funds and IPOs.
Stock trading takes place on stock exchanges. You cannot however buy directly from the exchange. You need to find a broker that will help you understand your needs and purchase stocks for you. They can be thought of as agents that will handle transactions on your behalf without you actually owning the securities. Brokers will charge a commission in exchange for helping to execute a trade Kotaksecurities.com is one of India's top stock brokers. They offer a wide range of products and services to meet all your investment needs. After you have registered, you can trade via the Kotak Securities website or our mobile trading app. You can also use our desktop trading application. Or, you may trade over the phone with our Call & Trade facility.
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The internet, business news channels, and print media are some of the best ways to obtain stock information. Alternately, you can access the Kotak Securities website to get all the information you need in a matter of seconds.
There are many types of orders you can place, including market orders, limit orders and stop loss orders. Good-till-cancelled or after-market orders (AMOs) are also available.
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Market orders are an order to purchase or sell stock at the current market rate. This signal your broker to execute your order at the highest price. A market order can't guarantee a certain price because the market price changes constantly.
You can place a limit or market order to avoid selling or buying stock at a higher price than you want. A limit order allows you to purchase or sell securities at a certain price. A limit order can be used to fix the stock's price. This means that you are looking to buy/sell a particular scrip at an unfavorable price. A limit order can guarantee a price but it cannot guarantee execution. Market-related factors could mean that the stock may not reach its desired price on a particular trading day.
A stop loss order, which is a regular order that a broker places to sell a security at a predetermined price known as the trigger price, is an order to sell the security. Sometimes market movements can surprise you. These market reversals can lead to loss-bearing transactions. Your defense mechanism is the stop loss trigger price. This is an amount that you can rely on to protect yourself from unanticipated market movements. If you buy a stock for Rs. If it reaches Rs. 10, you can place a stop-loss order with your broker. 8. This will help you avoid further loss in the event that the stock price falls further. It helps you limit your losses or protect unrealized profit, depending on the situation.
GTC (or Day Orders) are orders that your broker receives and which only hold during the trading day in which the order was placed. The order will be canceled if it is not executed by the end of the trading day. They are orders that are only good until it's canceled' or ‘good for the day'. Let's say, for example, that you placed a stop-loss order with your broker to have a stock sold once its price reaches level 1. Your broker will not sell the stock if it falls below limit X. Your broker's stop loss order will not be valid for the following day. Even if the stock has reached level X by Day 2, your broker will not execute the trade until you tell him again.
A Trading Member can place an Immediate (or Cancel) order to purchase or sell security securities as soon as it is released to the market. If the order does not fill its full quantity, it will be removed. The order can be partially matched, and the unmatched part of it is immediately cancelled.
The shares can be put up for auction at any time if they are short-sold and not delivered to the exchange. The shares are bought on behalf of the client and then delivered to the buyer. Your account must be frozen at 150% in order to continue the auction process. After the auction charges have been deducted from your account, this amount will be reversed.
To adjust for short-sold shares, you can also transfer shares from another demat account to your Kotak Securities demat account. The shares must be transferred at least one day before the pay-in deadline, which is 3.30 p.m.
You can see the market's progress and declines to get an idea of its overall performance. This gives you a clear picture of the market's direction. The name 'advances" indicates how far the market has advanced. If the market is not performing as expected, 'declines" will indicate. The Advance-Decline ratio, a technical analysis tool that tracks market movements, is called a "decline". This formula calculates the ratio:
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You cannot trade during market closures, but you can still place orders. These orders are known as After-Market Orders. Customers who cannot participate in the market during normal hours can place AMOs. You must keep the stock's closing price in mind when placing an AMO. You have the option to choose a price that is 5% lower or higher than the closing price. If your order falls within the 5% range, your order will still be processed at the opening price the next day.
AMOs are great for planning your orders and allowing you to do research. You need to monitor the price during market hours as it fluctuates constantly. AMOs are not subject to this requirement.
Research is essential for any investor. Many analysts and brokerage firms conduct their own stock market research, keeping in mind the economy and currency valuations. Many of them use public data from institutions such as the Reserve Bank of India, and consult experts in their research. Retail investors are not able to do this. This is why investors follow the findings of such research closely and give recommendations for stocks to buy or sell.
Yes, you can have more than one trading and demat account. These accounts can be opened with multiple brokerages and firms. Although you can open multiple accounts, this is not an option. You would need to pay maintenance fees for each account, which could prove to be expensive in the end.
Bull and bear markets are indicative of long-term movements that have a significant proportion. These runs are only possible when the market has been moving in the same direction for at least 20% of its value for a sustained period. You should not look at short-term movements lasting less than a few days as they could indicate corrections or temporary movements.
Stock prices follow a trend - either an upward or a downward trend. Prices fall during bear markets. But, the market will eventually look more expensive. As people buy slowly, the market starts to rise again. This is when the market stops falling and starts rising.
Similar to the lower end, the stock will become too expensive due to excessive buying. To make profits, traders sell in large numbers. This is why the price doesn't rise above this level. This is known as 'peaking'.
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This is the risk associated with investing in the stock exchange in general. This refers to the possibility that a security's price might drop. Even though a company might be struggling, its stock's value can rise because the stock market is growing. Your company might be doing well but the stock's value could drop due to negative factors such as inflation, rising interest rates and political instability that affect the entire market. Market risk can affect all stocks.
INDUSTRY ROCK
This risk affects all companies within a given industry. Because companies working in the same industry may operate in similar ways. This puts them at risk for certain types of risks that are unique to their industry.
REGULATORY HAZARD
Nearly all companies are subject to regulation. This refers to the possibility that new laws or regulations will be passed by the government that could have a dramatic impact on a company's operations.
BUSINESS RISE
These are risks that are unique to a company. It is the uncertainty about the ability of an organization to carry out its business. Product, strategies, management, labor force, market share, etc. These are some of the most important factors that investors consider when assessing the company's value.
Bankruptcy allows creditors to take control of a company when it is unable to meet its financial obligations. Both bondholders and stocks fear bankruptcy. Because you won't get your entire money back, this is why bonds and stocks are afraid of bankruptcy. The firm's assets are generally sold to pay creditors the most. If the liabilities exceed the assets of the company, creditors could be in a losing position.
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