TRADING SKILLS & ESSENTIALS

Counterparty risk is the risk that a counterparty (a party to a transaction or agreement) may fail to fulfill its obligations under the agreement, resulting in financial loss or damage to the other party. Sources of Counterparty Risk: Examples of Counterparty Risk: Mitigation Strategies for Counterparty Risk: Importance of Counterparty Risk Management: Counterparty risk management […]

A trading platform is a software application that allows investors to buy and sell securities, such as stocks, bonds, derivatives, and precious metals. There are many different trading platforms available, each with its own unique features and benefits. Types of Trading Platforms: Key Features of Trading Platforms: Popular Trading Platforms: Choosing the Right Trading Platform: […]

Invisible trade refers to economic exchanges that do not involve the physical movement of goods and services. Instead, they involve the transfer of ownership or rights to intangible assets, such as financial instruments, intellectual property, or contracts. Examples of Invisible Trade: Key Features of Invisible Trade: Impact of Invisible Trade: Examples of Invisible Trade: Conclusion: […]

Negative feedback is a control mechanism that reverses the direction of change when the system deviates from the desired set point. It is a fundamental concept in various fields, including engineering, biology, and economics. How Negative Feedback Works: Examples of Negative Feedback: Key Features of Negative Feedback: Advantages: Disadvantages: Applications: Negative feedback is widely used […]

Definition: Enterprise application integration (EAI) is the process of connecting different enterprise applications and systems to share data and functionality. It involves integrating various technologies, including data connectors, middleware, and APIs, to facilitate seamless data flow between different systems. Key Components: Benefits: Examples: Common Integration Techniques: Conclusion: EAI plays a crucial role in modern enterprise […]

A stock screener is a tool used by investors to find stocks that meet their specific criteria. It allows investors to filter stocks based on a variety of factors, such as price, market capitalization, P/E ratio, and dividend yield. Key Features of a Stock Screener: Common Uses of Stock Screeners: Examples of Stock Screeners: Benefits […]

A limit order is a type of order that specifies the maximum price you are willing to pay for a security or the minimum price you are willing to accept for a security. How Limit Orders Work: Types of Limit Orders: Advantages: Disadvantages: Examples: Note: Limit orders are commonly used by investors who want to […]

Risk control is the process of identifying, evaluating, and mitigating risks to ensure that they are acceptable. It involves a systematic approach to identifying potential risks, assessing their likelihood and impact, and implementing controls to reduce their likelihood or impact. Key Components of Risk Control: 1. Risk Identification:– Identifying potential risks associated with a particular […]

Speculative risk is the risk associated with investments that are primarily aimed at capital appreciation rather than income generation. Speculative investments typically involve the purchase of assets that are expected to increase in value over time, such as stocks, commodities, or real estate. Characteristics of Speculative Risk: Examples of Speculative Investments: Risks Associated with Speculative […]

Securities and Exchange Board of India (SEBI) The Securities and Exchange Board of India (SEBI) is a statutory body established in 1956 under the Indian Securities and Exchange Board Act, 1956. It is the primary regulatory body in India responsible for regulating the securities market and protecting investors’ interests. Key Functions of SEBI: Regulation of […]