Trading & Demat Account - Any trader who wants to trade in
Equity markets need to open a Demat and trading account with a SEBI registered
Broker/ Sub Broker by filling up a KYC (Know your client) form with necessary
documents.
A Trading account is used
for the purpose of trading which stores information regarding the Buy, sell
price, average price, Limits, Profit and loss statement of the client.
A Demat account
acts as a warehouse to store shares bought through the Trading account of the
Client; demat account is an electronic account similar to the bank account the
only difference being a demat account is used to store Dematerialized shares of
a company. DreamGains customer support team can assist you with opening Demat account. Follow the link for more updates.
Margin/ Trading limit/ Exposure - Every Trader is given leverage on the amount of cash and non-cash margin deposited with the member broker, the leverage could range from 4- 8 times on Intra-day basis. Ex: If a client has 50,000 Credit balance in his Trading account he can get limit up to 4 lakh (8 times 50,000). An offline trader normally gets more limit/ leverage than an online trader.
NCL (Non Cash Limit) - Brokers give trading limit not only on the
cash available in the trading account of the client but also on the shares
deposited with the broker, remember this is only an intraday limit, useful for
HNI clients having huge holding with them.
BTST (Buy Today Sell Tomorrow) – It is a technique mainly used to
take the advantage of the movement in the stock for 1 day, especially when a
news/event is awaited to happen on a particular stock.
STBT (Sell Today Buy Tomorrow) – In this technique, the trader
sells a stock today and buys it tomorrow. This CANNOT be done in Cash segment.
Outstanding Order - Any pending order which is not yet executed is
known as Outstanding Order. It can be modified or cancelled as required.
Trade Confirmation - A confirmation of trade sent by the exchange
is known as Trade Confirmation. It contains a trade number which proves the
execution of order.
Order Modification/ Cancellation - Exchanges provide a facility to
either modify the price or quantity or completely cancel the existing pending
order, but a trade once executed cannot be modified.
Contract Notes - Every investor has a right to get a contract note
which is like a bill of his/her trading for the day which mentions everything
regarding the trade done for the day, including the name of the share,
quantity, time of trade, brokerage levied, net delivery amount, taxes etc. It
is suggested that every investor must keep their contract notes with them.
Support - The
price point where a stock witnesses buying (demand) and normally stops to fall
is known as Support. There could be multiple support price points stating as
S1, S2, and S3.
Resistance - The price point where a stock witnesses
selling (supply) and normally stops to rise is known as Resistance. Similar to
a support point there could be different resistance points – R1, R2, and R3.
Target - Target, as the name suggest is used to book the
profits in a trade at a particular price point. Ex: A trader has bought a share @ 500 and decided 510 as a price
point where he will exit out of the stock, thereby stopping the profit per
share to Rs. 10.
Stop Loss - Stop loss, as the
name suggest is to stop or restrict the losses in a trade to a particular price
point. Ex: A trader has bought a
share @ 500 and decided 490 as a price point where he will exit out of the stock,
thereby stopping the loss per share to Rs. 10. DreamGains always suggests to trade with a Stop-loss.
Trigger
price - A trigger price is the price which specifies the price
point where the order will enter the system and not before that.
About DreamGains
DreamGains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients.
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