Equity Market Trading

Equity Market is one of the most widely used trading platforms, where stocks are bought and sold randomly. To know this market, you should know about its two types – Primary Market and Secondary market. Primary Market deals with new issues which are initially offered by the companies who are listing their shares for public. Secondary market deal with subsequent trading of the stocks listed and is very huge when compared to primary market.
There are many ways of trading in equity market and it depends upon user that which one is more favorable to the client. These are some of the common form of stock market segments –

• Equity Segment
• Margin Trading
• Derivative Trading

Each of the above mentioned categories has its own advantages and disadvantages. Understanding each type depends on liking and interest of each individual, so one should always understand well before going for any type of trading because risk involved is very high. This will help you find the right way of doing trading at the stock market depending on your fund and your objective of stock market investment.

Courtsey : http://tanglesolutions.com

Equity Segment of Indian Stock Market

Equity Segment is one of the most common forms of trading the stocks in Indian Share market. In this segment people buy and sell the stocks through a broker and once the stocks are bought by the investor, stocks are deposited in the DP account of the investor. It depends on the will of the investor, whether he wants to retain that stock or sell at a higher price to book profits. In Equity trading, there no limit of selling or holding the stock, it entirely depends on the will of the investor. But brokerage charges in equity segment are higher than derivative segment. In an investor is looking for good returns without any risk, the best way is to invest in long term.
In equity segment there are two types of trading, intraday and long term. Intraday trading involves buying and selling the stock on the very same day between trading hours. It is more like gambling where there is huge risk as the stock fluctuate randomly making profits and losses. In long term trading, investor buys a share in a good company and then waits for that to give returns. Investors also invest in long term for years and years and get dividends and profits.

Margin Trading in Indian Stock Market

Margin Trading is also called intra-day trading where you have to close the deals within a day generally and risk involved is high. This type of trading also has an advantage that you don’t have to invest full value of the stocks you are trading with. You will get 5 to 20 times of the margin on that amount which you have actually in your demat account. Depending on your trading habit and credibility, the broking company increases or decreases your margin. So it enables you to buy much more stocks than your actual amount you have invested.
You may also take the advantage of short selling the stocks, it means you may sell the stocks which you don’t even have in your account but you have to buy that stock by the end of the day otherwise you have to bear penalties. One can gain by selling stocks at higher prices and then buying the same at lower prices, all goes in predictions and estimations. Short selling is also considered very risky because you have to buy that stock even at higher prices at the end of the day to avoid heavy penalties. The brokerage of the margin trading is also lower than delivery based trading.

Courtsey : http://tanglesolutions.com

Derivative Segment in Indian Stock Market

Derivative trading is quite complex to understand and it has four different ways

• Future
• Forward
• Options
• Swaps

In derivative trading, the investor actually buys a contract that expires within a given time frame which makes it necessary for the trader to buy or sell the stock in that stipulated time. Generally all the derivative contracts of a particular stock exchange expire on the same day of each month.
In derivatives stocks are mandatory to be bought or sold in lots which vary from one stock to another and prices of those lots are derived by multiplying current market price of the stock by their numbers. In derivatives, the investor can buy the lots by investing 30 to 40% of the total stocks value. The investor can gain by short selling the stocks as well that means he can first sell the stocks at higher price and then make profit by getting the stocks at lower price. Also the brokerage in derivative segment is lower than cash segment when compared to the invested amount and the number of stocks you hold.
Derivative segment require very good calculations and quick decision making so very few people are doing this trading properly and rest bear losses and usually quit instead of learning.

Equity Trading Tips

Indian Share Market  is also called as Indian money market which comprise of a vertical – Equity Trading. Indian Equity Business has improved into third most famous market across Asia following China and Hong Kong market. Equity Trading can be done by intermediaries who actually charge their commission for trading called – Brokerage. The Stock and Equity business sector in addition incorporates the liability business sector which is regulated by wholesale dealers, essential dealers and monetary institutions.
Equity Trading Tips by Trustline
Trustline is a renowned broking house of India based in Noida which offers excellent equity trading tips to the customers along with providing all the other financial instruments like demat, mutual funds and commodity trading etc. Trustline has its own research and analysis wing which always works hard to analyze the market and provide excellent equity trading tips to help the share traders to book profits. They have always worked to offer very accurate and effective trading tips
They make use of all the latest tools speculate the market accurately and give regular equity trading tips to the customers. They send regular SMS and Email updates to the clients while trading hours to educate them about best stocks to buy and sell.

Invest in Mutual Funds to save tax

A mutual fund is a financial instrument offered by different financial institutions, helping people to invest and grow their wealth. Investors buy units or shares of a fund and the money collected goes into buying securities. There are different types of mutual funds available in the market like stock, equity, bond and hybrid funds based on what it is invested in. Investors generally have to pay a premium amount at regular intervals till the term of the fund matures. When the return of it is higher than the amount it was bought at, this is referred to as the capital gain which is usually taxed in investments.
Usually capital gains are what are taxable for investors. However with it, there are exceptions. A short-term debt fund that is redeemed within a year is taxable. However if held for longer than a year, the capital gains tax is significantly reduced. Similarly, an equity fund held for more than a year, the tax is seriously reduced and in some cases may be negligible. On the other hand, dividends from both equity and debt funds are bereft of taxation.
So go for mutual funds and get benefits of saving taxes on your current taxable income.

Bullion (Gold & silver) fall on fresh selling, weak global cues

Bullion metals prices (gold and silver) fell down in Delhi, yesterday (Wednesday, 13^th November) after heavy selling by stockists looking after the global trend in this weak.  Gold fell down by Rs 315 with Rs 31,500 per ten gram while solver lost Rs 852 to Rs 48,000 per KG. Traders said that selling of bullion metals in large volume by stockists this weak caused the prices to fall down. London and New York are the two major benchmarks to set the gold prices globally. Gold in New York plunged by 1.22 % per ounce which comes to USD 15.70 and silver faced a down by 3.04 percent which is USD 20.70 per ounce.
In India, gold of 99.8 percent purity tumbled by Rs 315 and same amount of downfall is seen for the gold of 99.5 percent purity.  Silver ready dropped by Rs 850 to Rs 48,000 per kg and weekly-based delivery by Rs 740 to Rs 47,310 per kg. The white metal had shed Rs 160 in last trade.
Bullion metals trade facing a downfall in world market and it can be a right time for those are willing to buy gold for different purposes.