Real Time Data from NSE, BSE & MCX is distributed to various data vendors as 4 different levels. These levels are mainly based upon the amount of RealTime Market depth (order book) provided by the exchanges. This precision and the knowledge of Market Pricing is far more important for the day Traders than for a long term investor.
Market depth is the order book or an electronic list of buy and sell orders. This list is organized by price level and updated to reflect real-time market activity. Most of today’s trading platforms offer some type of market depth display. This allows the traders to see the “buy and sell orders”, waiting to be executed. This could include the best bid and ask prices and the size of all the bids and offers. The Market Depth, therefore, mainly segregates, the different levels of the real time data feed from the NSE, BSE & MCX.
Level I Real Time Data from NSE, BSE & MCX
Level 1 data includes only the Real Time Data of the first level in the order book. This includes the Best Bid and Best Ask, plus the total accumulated Volumes Displayed as Bid Size and Ask Size. Depending on the exchange the number of orders might also be made available for each side as order. Currently, the number of orders are not provided by any exchange in India. The Basic market data is known as level 1 market data, and mainly includes the following information:
Bid price: The highest price that a trader has offered and is willing to buy the asset at.
Best Bid size: The number of shares, lots or contracts that are available at the bid price.
Ask price: The lowest price that a trader has offered and is willing to sell the asset at.
Best Ask size: The number of shares, lots or contracts that are available at the ask price.
Last Traded Price: The price of the most recent trade.
Traded Quantity: The number of shares, lots or contracts traded in the most recent trade.
Level 1 market data provides all of the information needed to trade using most trading systems. If you trade a price action or indicator based strategy, then Level 1 market data should satisfy your informational needs. Level 1 Data is also sufficient for complex indicators, including Market Profile, Market Balance, Delta Divergence etc. If you are not doing Depth of Market Trading, Level 1 data is all you need. Scalpers who trade based on changes in how other traders are bidding and offering, will need Level 2 Market Data.
This type of quotation system is a step up from the Level 1. Data providers offer Level 2 market data at a premium to Level 1. It offers extra information that is neither useful for normal day traders nor for long term investors. Level 2 market data is also known as the ‘order book’. Level 2 market data shows the trader a bigger picture of the market order flow. This because it shows the orders that are currently pending for the market. It is also known as the ‘depth of market’ (DOM) or ‘market depth’. This is because it shows the number of shares or lots that are available at each bid and ask prices. In Level 1, the trader was only able to see the best prices for buying and selling. He could not look any deeper into the details of other less competitive orders on the system. The distribution of noncompetitive orders is important to institutional investors who plan to buy or sell large blocks of shares. Depending on the exchange the level of market depth (of the order book) can be 5, 10 or 20 levels. Normally the level of depth is 5 for Level 2, Real Time Data from NSE, BSE & MCX.
How can Level 2 Market Data be Viewed ?
Market depth data can be viewed on a separate Level 2 window or on a price ladder. Because market depth is in real time, it changes constantly throughout the trading session. A “Price Ladder” or “DOM Display” shows each price level in the middle column. The number of buyers at each price level on the left, and the number of sellers on the right. https://preview.redd.it/wxsupr4eldo41.jpg?width=287&format=pjpg&auto=webp&s=cadf9b6371b1e0418eba9a0e79ecbc835af9c472 Another way to view market depth is to overlay it on a price chart, as shown in “Charting depth” (below). This is the same data that would appear on a Level 2 window or DOM. The only difference between the two is the visual presentation. In this example, the levels of market depth are displayed over the right-hand side of a price chart, next to the various prices. Green bars represent the buy orders. The size of each green bar reflects the relative number of shares or lots that buyers would like to purchase. Red bars indicate market participants who want to sell. The size of each red bar reflects the number of shares or lots that traders would like to sell. https://preview.redd.it/jn1a8anfldo41.jpg?width=287&format=pjpg&auto=webp&s=db655173a57b7099762034d47b9c014f711f210e
Level 3 Real Time Data from NSE
NSE Real-Time Data also provides a 20 level deep order book. Actually, this is a subset of the Level 2 Data, known as Level 3. Here, Level 2 provides market depth data up to 5 best bid and ask prices. Level 3 provides market depth data up to 20 best bid and ask prices. Everything else in Level 3, is the same as Level 2. More details of the various Levels Provided by NSE can be obtained from the NSE Website (Data Vending Info).
The Tick by Tick Feed is provided by the NSE. This feed consists of each and every order or a change in the order. It includes:-
A new order accepted & added to the order book
Any order canceled
Or, any order modified and added to order book. It contains the new and old image (i.e. price and quantity) of the order.
Trade – when any order is fully or partially executed.
Market Orders added to the book
Fully or Partially Traded Market Orders
This feed sends a huge amount of data. For just one symbol, say, the NIFTY future, the number of trades goes to 200 – 300 trades per second. And this much data is not easy to handle. It also needs better applications to churn out meaningful information from this data. This feed works best on collocated servers and LAN of the exchange. If you required this feed at your location, from a data vendor, you would need a leased line and also a specific software different from Amibroker or NinjaTrader, which is able to crunch the huge data flowing from the exchange with micro second-time stamps. And if you were able to do that, you would also need to be able to trade instantly. Therefore, this feed is not for the retails traders or fund houses. This feed is best suited for High-Frequency Trading (HFT) with servers co-located at the exchange.
Main Difference between Level 1 and Level 2 Market Data?
If you are a new trader, then you only need level I market data. You can always add Level II data, later, if you wish. Level 1 market data provides all of the trading information that is needed to display the Price Charts. This is what you will use to perform Analysis and make trading decisions. For many traders, watching the constant flurry of changing bids and ask Prices on the Level 2 will result in information over-load. This could actually have a detrimental effect as opposed to a positive one.
Can Level 2 Data be useful?
Yes, because it not only shows, where the price is now but where it is likely to be in the near future. Some trading strategies might require Level 2 market data. Typically, this data be used in a scalping strategy, where traders take advantage of short-term patterns are seen in the bidding/offering activities of other traders. Also, for example, if a big fund wished to sell 5 crore shares in a medium-sized company. Using level 1 data, they may see that the highest bid price on the market is Rs.2000 for 50k shares. The fund manager will now know that they can sell their first 50k shares at Rs. 2000. However, the fund managers will have to accept less in order to shift the rest of their holding. Therefore they would then trade at the next best bid price, and so on, receiving marginally less for their shares each time they exhaust an order in the market place. It would, therefore, benefit the fund manager to be able to assess how quickly the competitiveness of the bid prices trail off before they place a large block of shares for sale. This is called – being able to see the ‘depth’ of the market. If the competitive orders are thin on the ground then they may decide to delay their the sale or only sell a small batch. As a result of strong demand; the fund may be able to offload its shares without moving the share price down too much and achieving the best deal for their account holders.
This demonstrates why level 2 data is quite pointless for your average day trader. Trading in such small quantities will rarely exhaust the bid price or offer price which they could see on level 1. Other than very large institutions, the only other viable market participant who could fully utilize such data would be a high-speed, automatic trading the algorithm which pays extremely low commissions. Hope, I have been able to give you an insight on the various Levels of RealTime Market Data & their implications in trading.
A directory prospect is a derivative, similar to a stock future, whose value is dependent on the value of the underlying, in this case, the index like the S&P CNX Nifty or BSE Sensex, and market profile trading strategies. By making a trade-in inventory bank nifty future, an investor is buying and selling the basket of stocks comprising the index, in their respective weights. Stock index futures are traded in terms of order flow trading strategies. Each treaty would be to either purchase or sell a limited value of the index. The amount of the deal would be the lot size multiplied by the index value. About Nifty futures Nifty futures are index futures where the order flow underlying is the S&P CNX Nifty index. In India, bank nifty futures trading initiated in 2000 on the National Stock Exchange (NSE). For auction market theory contracts, the permitted lot size is 50, and in multiples of 50. Like additional destinies contracts, Nifty fortunes treaties also have a three-month trading progression -- the near-month, the next month and the far-month. After the expiry of the near-month contract, a replacement lease of three-month duration would be introduced on subsequent trading day. Investors can trade Nifty futures by having a margin amount in their account. This margin may be a percentage of the contract value. It's usually about 10-12 per cent. Why do you have to choose them? Hedging. In simple terms, hedging may be a strategy that helps limit losses. Exposure to stock is like exposure to an index. this is often because most stocks move in tandem to the market. Exposure to index futures helps hedge this risk — speculative gains. If you're sure about future market movements, you'll make profits through index futures. If you bullish on the market buy index futures. If bearish, you ought to sell index futures. How do they work? You enter into a Nifty derivative instrument at a specified index value. On the expiry of the agreement, the investor's profits would be the difference between the extent of the index on expiry and therefore, the level laid out in the derivative instrument at the time of purchase. Strategies to Follow: Small stock, extended index futures. There are times once you sell the capital, but there's an upside within the market, thus leading to potential lost profits. Index futures assist you in mitigating this risk. By buying index futures once you are short on the stock, you'll minimise the number of potential benefits lost: equity portfolio, quick index futures. There are times once you own a portfolio and are uncomfortable about market conditions. You'll hedge this risk by selling index futures. The concept vests on the very fact that each collection has index exposure and risks are accounted for by fluctuations within the index. Long Stock, Short Index Futures Suppose you're long 500 shares of Reliance Industries at the worth of Rs 1,000 per share; spot Nifty is at 5,000; and Nifty futures is at 5,020. To protect your Rs 5 lakh (Rs 500,000) position from a market downturn, you would like to sell 100 Nifty futures. Suppose on the expiry date; the spot/futures Nifty is at 4,750 (5 per cent fall). On closing, both the positions, you'd earn Rs 2,000. Your job in Reliance Industries would have dropped by Rs 25,000, and therefore the short Nifty would have gained Rs 27,000 [i.e., 100 x (5,020-4,750)] Short Stock, Long Index Futures Suppose you're short 400 shares of Infosys Technologies at the worth of Rs 2,500 per share; spot Nifty is at 5,000; and Nifty futures is at 5,050. To protect your Rs 10 lakh (Rs 1 million) position from a market upside, you would like to shop for 200 Nifty futures. If on expiry, the spot/futures Nifty is at 5,250 (5 per cent rise), on closing both positions, you lose nothing. Your job in Infosys would end in a loss Rs 50,000, and therefore the short Nifty would have gained Rs 50,000 [i.e., 200x(5,250-5000)] Hedging Portfolio Risk Suppose the spot Nifty is at 5,000 and consequently the three-month Nifty futures at 5,015. To guard a portfolio of Rs 5 lakh (Rs 500,000) from a drop by the market, you would like to sell 100 December Nifty futures. Suppose on the expiry date; the spot/futures Nifty is at 4,500 (10 per cent fall). Your hedging strategy would earn you a profit of Rs 51,500[i.e., 100x(5,015-4500)], which compensates you for the Rs 50,000 (10 per cent) fall in your portfolio. Costs Inherent With Trading Strategies: There's a reason professional traders once only employed active trading strategies. Not only does having an in-house brokerage reduce the prices related to high-frequency trading, but it also ensures better trade execution. Lower commissions and better performance are two elements that improve the profit potential of the strategies. Significant hardware and software purchases are typically required to implement these strategies successfully. additionally, to real-time market data, these costs make active trading somewhat prohibitive for the individual trader, although not altogether unachievable This is why passive and indexed strategies that take a buy-and-hold stance offer lower fees and trading costs, also as smaller taxable events within the event of selling a profitable position. Still, passive strategies cannot beat the market since they hold a broad market index. Active traders seek 'alpha', in hopes that trading profits will exceed costs and bring a successful long-term strategy. Thank you!
Derivatives future and options Being a developing nation Indian stock market a being very shallow in late ’90s. In early 2000 India introduces the exchange-traded derivatives on NSE and BSE both. With the emergence of futures trading on NSE India witnessed huge spike in trading volumes and major chunk of new participants entered in the market. During 2000-2008 Bull Run Indian traders make a huge amount of money in futures and options trading. It’s been 20 years since the derivatives have emerged in India and we have seen a lot of informed traders are trading derivatives market as their full-time career and many also based trading systems have been introduced in recent past. ? So why anyone needs to understand the derivatives and how it will going to help in improvising the trading strategies and profit margin we’ll try to understand this in this article.
Let first try to understand what are derivatives??
Derivatives are the financial instrument which derives its value from the performance of some underlying assets. Any assets whose value are uncertain and cannot be determined can be an underlying asset for derivatives. For example, if we say what will be the value of Nifty in next trading session, intrinsically it is difficult to say where nifty trade will tomorrow at 1 P.M. So two people who hold the opposite view about Nifty can make bet on the moment on nifty and make a contract on this assumption. In derivatives scenario, these types of contracts are known as Futures Contract. Futures market follows the zero-sum game rule, which means one person loss will be the profit of other, financial assets such as share possess some value they create wealth but profit and loss from the derivatives market is being generated from the pocket of traders who are in a trade.
What is the importance of derivatives markets?
Derivative makes Market Efficient – Derivative market helps in replicating the underlying asset payoff. The price of underlying and its derivatives will remain in equilibrium which reduces the arbitrage opportunities in the market.
Price Discovery – Derivative helps in determine the correct price for the shares and commodities. Financial markets are affected by all the major news around the world. How the trades interpret this information the prices of stocks keep on changing and helps in discovering the right price.
Counterparty Risk – Derivative market reduces the counterparty risk as exchanges are very strict on margin norms, they take upfront margin from both the parties based on the volatility of stock so that counterparty fulfills their obligations.
There are different types of derivative contract such as forward future options, swaps, floor, and collar, etc. However, the most preferred derivative instruments are futures and options. Most of the traders all over the world trade in options markets. In India, we have also witnessed that a large number of traders are trading in options markets. Although options trading is the most difficult and complex in all the above derivatives. Let’s try to understand the options market. Whenever we talk about directional trading, people are more fascinated towards options trading as it required very less capital and can generate a higher return. But as we discussed option trading and understating is not that much easy to implement. In the option market, there are basically two instruments which trader’s trader – which are known as Call option and Put options. Call options increase in value when the market goes upside and decrease in value market falls. On the other side, put options increase in value when the market falls and decrease in value when the market rise. With these, there are other complications which are attached to options which are known as Option Greeks, such as. • Delta – shows the rate of change of premium with respect to change in option premium. For example, if Nifty rises from 11000 to 11100 how much the value of call and put options increase and decrease in value respectively that is determined by delta. • Theta – show the decrease in value of an option due to passage of time, if the time to expiry is high means the expiry date is for the option value decrease is less but as we approach the expiry value of option started decreasing at an increasing rate. • Vega – shows the change in option premium with respect to change in volatility of the option. Option premium is also affected by an increase or decrease in the volatility of the market, higher the volatility the option premium will tends to be high and vice versa. • Gamma – Show the rate of change of Delta with respect to change in the underlying price. • Rho – Rho signifies the change in option premium with respect to change in interest rate in the economy. Let’s take an example to understand options working. Nifty is trading at 11000 and 11100 CE is trading at Rs.55. and the expiry is on 31st Oct. We are expecting that market will reach 11600 by the end of 31st Oct 2019. Scenario 1. Nifty reaches at 11600 on 31 Oct 2019. Instead of buying the future contract we bought the call option of 11100 at 55.00. So we have paid Rs. 55 from our pocket that’s our outflow [i.e 55*75(75 is the lot size defined by exchange) = Rs.4125. (Total Investment). First we need to cover out cost to be in profit. So Strike price + Premium will be our break-even point in this case. i.e 11100 + 55 = 11155. We will start making money when the nifty will start trading above 11155.00 in our case. On 31st Oct Nifty trades above 11155 and closes at 11600 as we expected. P&L = 11600-11155 = 445 (So we earned 445 point on this trade. i.e = 445 *75 = Rs. 33,375.00 So with our expectation be right we make profit of 33,375 with just investing only Rs.4125. Scenario 2. Nifty goes opposite to our view and closes at 10800. In this case, we didn’t close above 11155 which is our break-even point and we know that if the market goes the price of put options rise and price of call option falls. So, in this case, we’ll lose money. We will lose amount only equivalent to the amount paid which is equal to Rs.4125.00 Scenario 3. Nifty remains at 11000 only. In this case, when the market closes at the same price, the theta will play an important role here, as the expiry comes near our option value which we have bought at Rs.55 will start to decay and it will become zero if the market closes to below 11155. As in our case if stay at 11000 we’ll again loses money as it stays below 11115 and that will again be equal to Rs.4125. The above calculation shows the simplest working of options trading, there is more and more complex addition to it.
Foundation knowledge to invest in stock market in India
Hello everyone, I thought many of us are willing to invest in stocks or the stock market in India but are unaware where and how to begin. I am posting about the basic details: Basically, we have exchanges which provide us a platform to deal in stocks. Definition of exchange: Open, organized marketplace where buyers and sellers negotiate prices. There are a total of 21 stock exchanges in India, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) being the largest. For commodities we have MCX and NCDEX Well, the first step, talking in India you need a demat account. Now what is that: An account that holds all the shares that you purchase in electronic or dematerialized form. Basically, a demat account is to your shares what a bank account is to your money. Like the bank account, a demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs). Now with that definition, let me elaborate you need a demat account only if you are willing to deal in Shares that too taking the delivery or holding the shares for T+1 day. If you want to invest in other than stock market you need a demat. BUT if you are planning only intraday or day trading; you don’t need a demat account. YOU NEED ONLY TRADING ACCOUNT. How to open a demat account? Choose a broker on parameters: brokerage charges, annual charges and leverage provided. Fill up a form; submit documents like PAN CARD, CANCEL CHEQUE, ID PROOF, and INCOME PROOF (BANK STATEMENT OR ITR) AND INVESTMENT OR MARGIN CHEQUE. WHAT IS MARGIN AND LEVERAGE? Margin is your investment amount that you are investing and leverage is the limit you get on it. Let’s say you have 10,000/- to invest that is your margin and leverage is limit that broker provides for trading. Like if he gives you 4 times limit that means you can make a trade where you will need a margin of 40,000/- Why? Because broker make commission on turnover more turnover you make in buy and sell more profit he makes. You have types of orders at trading platform or the terminal: CNC (Cash n Carry): For delivery based equity trades. To buy stocks for CNC or for delivery 100% money required. To sell stocks as CNC, stocks need to be available in holdings. MIS (Margin intraday square off): For intraday trades Trade using MIS for additional leverage/margin. All MIS positions auto-squared off 10 to 15 minutes before close of markets or when losses exceed 50% of margin (Auto-square off rule can vary based on market conditions).
Upto 10 times intraday leverage for equity
Upto 3 times for futures
Upto 3 times for options shorting
No leverage for option buying
NRML (Normal F&O trades): For intraday/overnight F&O trades without additional leverage. Exchange stipulated margins, positions taken as NRML can be held until expiry, provided required margins maintained. Types of Orders:
Limit (LMT) order: Place buy or sell order at a predetermined price
Market (MKT) order: Place an order to be bought or sold at the best available price.
Stoploss or trigger orders (SL and SL-M): Stoploss if placing a predetermined loss booking order at a trigger price. Trigger if using this type of order to enter a fresh buy above the current market price or sell below the current market price when the trigger price is hit. SL if limit order to be sent when trigger is hit. SL-M if a market order to be sent when trigger is hit.
Advanced order types:Regular orders with time validity: Day orders for orders to be valid till end of day (selected by default).
IOC (Immediate or cancel) for orders to be cancelled if not filled completely immediately.
Bracket orders: Intraday limit orders (NSE, NSE F&O) with a target and stoploss and an optional trailing SL all placed simultaneously. Target, Stoploss, and Trailing SL all activated only once the original limit order executed. SL automatically cancelled if target is met and target automatically cancelled if SL is hit. Trailing SL which is optional trails the stoploss price or moves the SL price every time the scrip moves in a favourable direction by the trailing stoploss value mentioned.
Cover orders: Intraday market orders (NSE, NSE F&O, Currency, and MCX) with a predetermined stoploss order. Similar to bracket orders, higher leverage due to fixed stoploss and all positions auto-squared off before market close
AMO (After market orders): Place orders for the next trading day the previous day itself. AMO orders can be placed only during the following time duration – Equity – 3:45 PM to 8:59 AM Currency – 3:45 PM to 8:59 AM F&O – 3:45 PM to 9:10 AM MCX – Anytime during the day, if placed during the market hours the order will go through the next day.
You can trade in equity. In equity you have:
Cash Trading or Cash Market: In this buying or selling of securities is done by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made.
Derivative: It is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from shares or cash segment only.
We created this website to bring together all the tools and services you’ll need to start trading for real. If you want to start taking advantage of the markets now, without having to become an expert, our free trading signal. Whatever you’re looking for, you’ll find it with us. Here you’ll learn the basic terminology to be a successful Forex trader. To begin learning Forex, you’ll need to have a good grasp on the basic definitions, rules and terms used by professional traders. At first, this can sound daunting but after we spell out the fundamentals, it will become clearer and you’ll be on your way to becoming a Forex trader. We will cover terms, such as; base currency, the quote currency, micro lots, mini lots, standard lots, long position, short position, pips, spread, margin and many more. Someone who is using more than 10% of the whole equity into a trading session is probably not having a good money management strategy. Because you should always trade safe and also because the market may turn back on you and you would find yourself in a big margin problem. With good risk management, having 10% of your account invested can bring consistent returns with no problems.
Profit Rate :
Some traders can’t make 10% per year. Others can safely and consistently make 30% per month and they are not afraid to show their verified performance as a solid proof of what they offer. While taking into consideration a proper risk and money management, you should never aim to make millions in one week with a small account because that would probably mean hitting margin call. Just remember: a good strategy and analysis will always bring profits. And if at the end of the month you have only 1% profit, that means you don’t have -1% loss.
Choosing the Best Forex Broker :
In order to start trading Forex, you will need to find the right online Forex broker for you with the cash rebate program. It’s important to find the right Forex broker for your trading needs according to several important criteria, such as security, customer service, trading platform, transaction costs, live quotes and more. While reading our guide on how to choose the best FOREX BROKERS.
Forex for free :
Most Forex brokers offer many free options, services, tips and information to help you trade better. Real-time charts and news, help guides, and blogs help you understand and learn about the market in real time. There are also many “demo” accounts to try the market before putting in real money.
Why Trade Forex?
The Forex market is fast becoming the most attractive and popular market in the world. The traditional stock is no longer relevant and traders are moving fast into the Forex. We collected here a few reasons to show you why this is happening and what advantages the Forex market has to make is so popular. We choose to focus on a few very important advantages of the Forex trading and the reasons that people choose this market: forex is the largest financial market in the world. The daily volume of the Forex market is huge over $3 trillion per day. This makes the stability of the market very good compared to stock trading. The price in the Forex market is exactly what you see is what you get and you can follow it very easily. Forex trading simplifies everything, there’s no clearing fees, no exchange fees, no government fees, no brokerage fees, no middlemen. The elimination of the middlemen gets the traders closer to the actual trade and makes the traders responsible for their pricing. The brokers are usually paid through a service called “bid-ask spread”. The Forex market is open 24 hours a day. Opening on Monday morning (in Australia) and closing in the afternoon (in New York). This is great for traders that can trade all day long or in parts. You can choose the times that are convenient for your trading, day-night, when you eat or when you sleep, whenever you want. In Forex trading you can minimize the risk by depositing a small amount that will control a larger contract value. This is controlled by leverage and can make you profitable in the Forex market. If a broker gives 50 to 1 leverage it means that with $50 deposit you can buy or sell with $2500. If you put $500, you can trade with $25,000. All this needs to be done with great risk management because high leverage can easily lead to great loss, as well as great profit. The Forex market is huge and therefore also very liquid. This means that on every buys or sell that you make, there will be someone who will take the other side of the trade. You will never be grounded because there’s no one on the other side. To get started you would think that you need a lot of money. The reality is that online Forex brokers have “mini” and “micro” options and some of them have a minimum of only $25. This is great for Forex beginners because it makes the trading starting point easier. I’m not saying that you need to start with the minimum, but being cautious is never bad and starting small is good for the average trader. main trading company
Forex the best trading market :
You can easily predict the movements in the Forex market you have many repetitive patterns and it’s fairly easy to learn, recognize and analyze these movements. The prices tend to go up or down and return to the average. They stay for quite a long time up or down and this stability makes the Forex market a much easier market to follow. This gives the traders a huge advantage in controlling their trades much better than the disorder.
Risk Warning :
We always suggest our clients to carefully consider their investment objectives, level of experience, and risk appetite. try to money management with every trade. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. FOREX IN WORLD takes no responsibility for loss incurred as a result of our trading signals. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. FOREX TRADING IN INDIA: Forex means currency pair trading. Indian citizens can trade only currencies that have a pairing with INR. It is legal to trade with Indian Brokers providing access to Indian Exchanges(NSE, BSE, MCX-SX) providing access to Currency Derivatives. Since 2008, RBI and SEBI have permitted trading in currency derivatives. The currency pairs available for trading are USD-INR, EUR-INR, JPY-INR and GBP-INR.
[self post]Struggles of being a small rancher in today's market.
I was asked to put up a self post to spark discussion on the effects of the decisions of our current and past government have are haven't made to held protect and grow small family farms and ranches. Just a quick back ground on my family operation. I ranch with my wife and my in-laws. We run a commercial cattle (meaning not pure-bred) and raise and train working dogs and horses. I work in heavy industry to offset the farm income and so do both my in-laws with my wife manages the day to day chores,with our kids, and managing the details. She has a degree in agriculture and has experience managing feed lots and auction markets at times she is the differance between paying the bills and going tits up. So I'll just layout some of the large scale problems that are slowly choking out our family operation and many others just like ours. •the high price of farm land- in the last 5 years we have seen the local price of land almost triple with the local introduction of corporate farms and competing Hutterite Colonies. Land is trading at almost 5 times assessed value which is far outside our earning potential to buy and expand with due to the earning potential of our herd. Cattle don't make near as much as pulse and oilseed crops. •dwindling national breeding herd- after the BSE scare and resulting price for market animal dropping to record lows a lot of established ranchers sold out decreasing the overall national herd numbers and now with prices for slaughter animals on the rise even if we wanted to increase our herd the price for breeding stock is too high limiting our growth. Herd can't grow we can't buy land to support larger herd sizes. •feed costs- factors like drought and crops used for bio-fuel (say corn) have increased feed costs to the point where it's not economically sound for us to buy feed. It makes us purchase hay (we can't produce enough ourselves due to not enough land) and seriously effects our bottom line. •diversification-people say oh well just diversify. Ok sure so we used to sell beef off the ranch quite well however that market out grew us as well. To make a profit we had to start selling our beef at a higher price then stores do. People would love to buy home grown beef but sometimes they have to make hard choices too. Also with Hutterites near by if there is "off the farm goods" to sell they sell it. And cheap. •input cost- the price for fuel and equipment never stops rising. We operate with older equipment and we do all own own maintenance and at time manufacturing. •off farm income-it has got to the point where the 3 of us working off the ranch are at the end of the day only keeping our heads above water. We are generating some growth but at times very little. It makes us feel like people in our shoes are the last stand the family farms will ever make. The government won't save us we need subsidies to help balance the scales. It feels like our Government has done nothing to help encourage growth for the smaller players in our sector of the AG industry. I have been told by many people, some tied closely to my local MP, I should just be glad I live in a province where off farm income is available and enough to keep my family going. The advocates for buying local think they are the solution but the market and the margins are too small. Feel free to ask questions and add there problems and even benefits of being a little guy in agriculture. I'm proud of what we do and dispute our challenges I wouldn't change my life style for the world. We are very proud of our every day accomplishments and sometimes that's just paying the mortgage. But I sure wish we could afford for is all just to stay on the Home Place and do what we were born to do. Ranch.
Last Week In Indian Economy - For the Week Ending 1st May, 2016
Last Week in Indian Economy
“Ab tak Colgate ka to gate khul gaya, Nestle ka to panchhi urne wala hai, Pantene ka to pant gila hone wala hai, aur do saal me Unilever ka lever kharab ho jayega." - Baba throwing shade at four of Patanjali’s biggest competitors.
Earnings-Palooza Continues The festivities for the quarter ending March continued with Airtel reporting a 3% increase in net profits and a subscriber total of 35 million Indians. Airtel’s gain turned out to be Idea’s pain. Shares of Idea traded down after the company reported almost 40% decrease in profits. That had to have hurt. The main event of the week were the banks that were reporting earnings. Profits at Axis Bank fell almost 2% as bad loans went up - it’s the bank’s first decline in quarterly profits in over a decade. ICICI Bank, the country’s largest private sector bank, reported a 76% decline in profits, the sharpest decline of quarterly profits ever in its entire history. Records like that are probably best left unbroken. Just as you breath a sign that after results like those, the worst is probably over - you realize it really isn’t. Both banks said that they expected the amount of bad loans to increase for a few quarters. Shareholders of bank stocks better get used to the pain of being burned by bad loans. Masochist shareholders of bank stocks can relax. Maruti Suzuki: :’( Delhi’s odd-even rule has drawn a lot of flak from residents who are being forced to take the bus every other day and smell the smells of the people on the bus. Among those unhappy has to be Maruti Suzuki, India’s biggest car maker. Maruti’s results for the first quarter of 2016 reported a 12% decline in profits. Interestingly, the company cites the Jat reservation agitation as one of the reasons for a fall in profits. But there are also people who are happy with the odd-even rule. Like a 13-year old boy who registered the domain odd-even.com and sold it to carpooling app, Orahi and now attends advisory board meetings at Orahi as a technical expert, presumably right after watching Chota Bheem. Sticking to the theme, chalk this one up as win for the militant environmentalists - Mahindra is planning to build India’s first automobile shredding plant that will focus on destroying 100,000 units of old cars, ships and machines per year. They should upload videos of machines crushing cars to YouTube. Let’s Pretend Like This Is A Creative Title Every time there’s technological progress, people piss themselves silly telling everyone that machines will take all our jobs now. That has been happening since the past decade or so and likely started when they invented swords to replace the jobs of all the people who made pointy sticks. But today, there is a special kind of irony when the engineers who make machines and software that replace other people’s jobs start getting replaced by software and machines themselves. One of Infosys’ co-founders says growth in hiring has decreased by 40% over the past 10 years and will likely fall further. And it’s all happening because of automation in the IT industry. There’s only one job available for every five engineers graduating every year. Psh, and they said arts students don’t get jobs. Due to this increased supply and reduced demand, salaries for new hires stayed pretty much the same despite a booming IT industry. Indians who opted for the road less traveled despite family pressure to pursue engineering cannot stop smiling right now. Last Week In Vijay Mallya’s Life Not to jump on the bandwagon of hating him because it’s cool now, but that Mallya fellow just can’t stay out of the news media, try as he might. Either that or the news media just can’t stay out of Mallya’s life, and they don’t even try. Brands confiscated by the banks a few weeks ago like ‘Fly the Good Times’ and ‘Fly Kingfisher’ were put on auction for the second time. And for the second time, nobody was stupid enough to make a bid. The minimum price was set at ₹367 crore. It’s safe to say - those brands are poisonous by now. The Supreme Court directed Mallya to declare all his foreign and domestic assets to the banks so they can be better prepared at the negotiations table. Mallya isn’t back in the news. He just never left the news. They also just revoked his passport - and being an MP, he’s even got one of those shiny red diplomatic passports, which is now useless. That last sentence was written before news broke that Mallya had resigned from the Rajya Sabha - so now that shiny red diplomatic passport is really useless. Bros Again: Reliance and Iran The Iranian Revolution of 1979 overthrew the ruling dynasty in Iran which was supported by the US. Since this was a matter of internal politics in a sovereign country outside the US territory, the US had to respond, as is tradition - and it promptly imposed economic sanctions, which were recently lifted. Reliance, which has substantial investments in the US, had suspended trade with Iran for fears of being dragged through the mud in the US. But last week, Reliance resumed buying oil from Iran after almost 6 years. Talking about oil - oil prices have crashed the floor and everyone’s predicting the end of Saudi Arabia as we know it. There was even talk about an IPO for Saudi Aramco, the Saudi national oil company, to raise cash and douse the fire lit by falling oil prices. If there is a fire, the kingdom is trying to hide the smoke. Saudi Aramco is now actually looking to expand and buy stakes in Indian petrochemical projects, possibly in a planned oil refinery on the west coast.
The presidential elections in the United States are proving to be the best drama series since Breaking Bad. And presidential candidates are all about that minimum wage. Even though the same conversation about minimum wage in India is painted less so with a political brush, last week we managed to increase the minimum wage for workers hired by contractors to ₹10,000 per month.
Disclosing your salary to your coworkers can certainly make for some awkward water cooler conversation. But what if you are mandated by law to disclose your salary, not just to your coworkers but to the entire country? An RTI disclosure recently revealed that RBI Governor Raghuram Rajan, the guy that basically runs the Indian economy, is paid a gross salary of ₹1.98 lakh per month. Here’s the shocker - he’s not even the highest paid employee at RBI.
Warren Buffett, everyone’s favourite billionaire (sorry Bill) recently livestreamed his company’s annual shareholder meeting on Yahoo. During the meeting, he showered praises upon praises on Amazon founder and fellow billionaire, Jeff Bezos. And Jeff deserves that pat on the back - As Amazon reported profits and revenues that crushed expectations back home in the United States, Amazon India surpassed Snapdeal to become the 2nd largest online marketplace in India after Flipkart.
Two weeks ago, it was about Japan building India’s first bullet train. But then there’s China who wants to build a second bullet train route in India, possibly a Delhi-Chennai connection. China does have the world’s largest bullet train network that it claims is profitable, but it also has 63% market share in the global fake goods trade (India has 2%). Considering the state of Indian Railways, fake Chinese bullet trains will probably still be an upgrade.
The yield on 10-year government bonds fell from 7.470 to 7.437.
Important Numbers being released this week: May 2nd: India Nikkei Manufacturing Index (Apr), Quarterly Results for - HDFC May 3rd: Quarterly Results for - Adani Ports & SEZ May 4th: India Nikkei Services Index (Apr) May 7th: Quarterly Results for - Grasim Industries
Amazon is doing great. But Apple has seen better days. It reported a 22% fall in profits for the previous quarter. Its stock is down 15% for the month. It’s so bad that Apple CEO Tim Cook had to go on American TV to remind everyone that it’s still the most profitable company in the world. In India, things are equally grim. Market share of iPhones dropped from 55% a year ago to just 37% today. And Samsung emerged as the leader with a 62% market share. Where are all the apple fanboys now, huh? In a lot of the developed world, people always call out the top 1%, the richest individuals, to stop evading taxes and pay their fair share. But in India, if you do pay taxes, you are actually the 1%. Government data shows only 1.25 crore Indians paid taxes in 2012-13 which is about 1% of the population. For the Week Ending 24th April, 2016 Accidentally deleted last week's post. Fat fingers. Ugh. A similar series titled 'Last Week In Indian Parliament' that aims to summarize the proceedings of the parliament every week was just started by kumbhakaran. Check it out here.
[Must read] Decoding the Reliance Jio Phone phenomenon
A shorter version (reduced by 91.0%) can be found on IndiaSpeaks. This is an extended summary, original article can be found here
[Must read] Decoding the Reliance Jio Phone phenomenon. Mumbai: Once every year, shareholders of Reliance Industries Ltd (RIL), Indias most valuable company, gather to hear their chairman speak on oil and gas, petrochemicals, refining and marketing and retail. The last one devoted the first 18 paragraphs to its legacy businesses. Reliance Jio Infocomm Ltd, the RIL unit that rattled the industry with mobile phone services launch last September, was front and centre. These includedJio Phone users getting unlimited data for just Rs153 per month, albeit with a fair usage policy of half a GB per day. to protect against misuse of the free Jio Phone offer.. A standing ovation followed. Mukesh Ambani peppered his speech with multiple adjectives: Team Jio stunned the world. It has been only 10 months since the launch of Jio. Jio has broken one world record after another.. First, nobody believed we could acquire customers fast enough to justify our Rs200,000-crore (Rs2 trillion) investment in the worlds largest greenfield 4G LTE all-IP network. Reiterating that more than 100 million people signed up for Jio in under 170 days, something he had disclosed at last yearsAGM, Ambani insisted this was the fastest adoption of any technology service, anywherefaster than even Facebook, WhatsApp and Skype. 5 billion) minutes of voice and video calls every single day. 20 on BSE, while those of its larger rivals Bharti Airtel Ltd andIdea Cellular Ltd were down 2. On Monday, 24 July, the next trading day,Reliance shares closed at an all-time high of Rs1,616. He proposes to end this shortage by building a data-strong network. with the highest speeds and the best coverage. Ambani simultaneously spoke of his plans to offer digital freedom to Jio Phone users beginning 15 August by giving them access to unlimited data. that is one-thirtieth the price.. The rider, however, is a fair usage policy of half a GB per day, to ensure that bandwidth is fairly apportioned. According to Ambani, Jio will soon have over 10,000 Jio offices across India. The deposit of Rs1,500 for Jio Phone is refundable after three years; however, while this makes it effectively free, there is an opportunity cost for users. Bank of America Merrill Lynch wrote in a note to clients on 21 July, We do not see Jio being able to penetrate the mass market with the announced offer as we see the monthly price of Rs153 and Rs1,500 initial deposit as still being steep for low-income consumers. RJio is targeting the feature phone market and targeting five million sales of the device, which is achievable by our analysis, Jayanth Kolla, co-founder and partner at digital technology research and advisory firm Convergence Catalyst, said. Considering the life of mobile devices currently, we expect a fair amount of these deposits being uncollected or not returned to consumers.. which essentially is revenue for the company, Kolla added.. He pointed out that the Rs153 unlimited voice and data pack offer, which translates to around Rs139 as average revenue per user, or ARPU, (after adjusting for taxes) is just marginally above the current industry average ARPUof Rs133 (after taxes). However, considering that this is a feature phone, and not a smartphone that can support a number of third-party apps, and the device does not support tethering of data (using as a wifi-hot spot) and comes with only a 2. There is a Google Internet (led by Google products such as Search, Gmail, YouTube, etc. and, in India, this device-plus services offering is RJios attempt at on-boarding and creating an RJio Internet for a specific segment of consumers, he added.. While we await the fine print of the Jio Phone, our initial analysis suggests the impact on larger telcos like Bharti, and DTH operators like Dish TV, will be neutral to marginally negative, Goldman Sachs researchers said in a 24 July note to clients. However, he cautions that since Reliance Jio under current regulations needs to pay an interconnect usage charge (IUC) to competitors for terminating voice calls on other networks, this could be detrimental to its bottom line. with the tsunami of calls originating from Reliance Jios network, Airtel loses 21 paisa for every minute that is carried on its network.. This has resulted in a loss of Rs550 crore per quarter for Airtel alone. In a 21 March note, Neil Shah, an analyst at Counterpoint Research, noted that more than 400 million feature phones were sold globally in 2016 and we saw smartphone market growth slow to 3% y-o-y, portraying that easy days of smartphone growth are over. Close to 200 million 4G feature phones will be potentially sold in India in the next five years, bridging the digital divide, presenting an opportunity for original equipment manufacturers as well as telecom operators, said Counterpoint Research.
Intraday Trading (Margin Product), is for those customers who want to gain from the expected upward or downward movement in price of a stock during the day but have limited money.Margin product is the appropriate solution for such customers which gives leverage upto 5 times the allocated trading amount. Is Margin Trading Facility available on both exchanges — BSE and NSE? I am an NRI. Can I opt for this facility? Can I choose the amount I want as Margin Trading Facility? Is there a limit to the number of scrips I can buy via Margin Trading Facility? What is the rate of interest for Margin Trading Facility? Do I need to open a separate Demat 5) Extension of timelines for Margin Trading reporting: Currently members are required to report Margin Trading details by 12 noon. In view of the short time lines and the voluminous details being sought can BSE grant extension of 1 working day to members to report the above details Reply: It is a SEBI requirement. Margin trading involves buying and selling of securities in one single session. Over time, various brokerages have relaxed the approach on time duration. The process requires an investor to speculate or guess the stock movement in a particular session. Margin Trading Funding (MTF) is a flexible option for investors; it enables them to trade beyond owned resources and boost their profits if the prices increase on expected lines. The facility is provided against a pre-approved list of securities by the broker, subject to predefined haircut for margin.
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