- Risks & Rewards of Securites Trading
- Risks and Rewards of Investment in Shares
- Stock Returns
- Risk & Rewards of Online Trading
- Benefits of AHL eTrade
- Risks of Online Trading & its Mitigation
- Alternative means to place/cancel pending orders during a system failure
Common Terms of Trading Screen
Following are the most common terms of trading screen:
|Market||The type of trade in which the Security falls.|
|Symbol||Unique short name assigned to any particular script by PSX.|
|Change||Difference between the last traded and close of the previous day‚Äôs price.|
|Buy Vol||No. of Securities investor intends to buy.|
|Buy||The rate at which investor intends to execute his/her buy order.|
|Sell Vol||No. of Securities investor intends to sell.|
|Sell||The rate at which investor intends to execute his/her Sell order.|
|Last Vol||No of Securities executed/traded in previous/last trade.|
|Last Price||The price at which last trade took place.|
|Total Vol||Total No. of Securities traded during a particular time/day.|
|Avg||Total value of Security traded, divided by No. of Securities traded.|
|High||The highest rate at which the Security traded.|
|Low||The lowest rate at which the Security traded.|
|Prev. Close||Previous day‚Äôs closing price.|
|Trade Time||The time at which the trade took place.|
|Limit Order||A limit order is when the user enters the order into the system with a specific price.|
A market order is when the user enters the order into the system without a specific price. The system will execute the order irrespective of price. The system will search for the quantity of order to be completed at any available price. In a rapidly moving market, a market order may be executed at a price higher or lower than the quote displayed on the website at the time of order entry.
Market Lot is the normal unit of trading for a security, which is 500 shares of stock having price less than Rs.100/- and 100 shares of stock having price above Rs.100/-.
For stocks, any transaction less than the market lot is usually considered to be an odd lot. These odd lots cannot be traded on the regular market and hence the Karachi Stock Exchange has initiated a separate ODD Lots Market.
A margin call most often occurs when the amount of actual capital the investor has, drops below a set percent of the total investment. A margin call may also be triggered if the broker changes their minimum margin requirement which is the absolute minimum percentage of the total investment that one must have in direct equity.
|Stop Loss Order||
A stop-loss order is a request to sell a security once the market price reaches or falls below an investor -specified price. Once the target price has been reached or surpassed, the order becomes a “market” order. This is especially true in a fast-moving market where stock prices can change rapidly. A stop-loss order is typically used to sell a security, to lock in profits or limit losses if a security price falls. Setting a stop-loss order for 5% below the price at which you bought the stock will limit your loss to 5%. Stop-loss orders are only available when selling a security to close a position.
Short selling refers to the practice of selling securities the seller owns in the hope of repurchasing them later at a lower price. This is done in an attempt to profit from an expected decline in price of a security. Such as a stock or a bond, is contrast to the ordinary investment practice, where an investor “goes long,” purchasing a security in the hope the price will rise.