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Basics of Financial Market

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m   

mSECURITIES MARKET
a.) PRIMARY MARKET
b.) SECONDARY MARKET
mBSE
mNSE
mLARGE CAP, MID-
MID-CAP &
SMALL CAP

m MARKET INDICATORS

a.) MONETARY INDICATORS±


INDICATORS±

m Interest Rates,
m Inflation,
m CRR,
m SLR,
m Money Supply etc.

b.) SENTIMENTS±
SENTIMENTS±

m Odd Lot Trading,


m Put Call Ratio,
m Premium on Stock Index Future,
m Ratio of Bullish vs Bearish Advisors etc.


m MOMENTUM INDICATORS±
INDICATORS±

m Price Volume Indicators,


m No. of Stocks Making New Highs vs No.
of Stocks Making New Lows,
m Advance Decline Ratio,
m Price vs Open Interest
  


 

FINANCIAL MARKET

MONEY MARKET
(LOW RISK & HIGH LIQUIDITY) CAPITAL MARKET

SECURITIES MARKET
(ORGANIZED MARKET)
UNORGANIZED MARKET
‡PRIMARY MARKET
‡SECONDARY MARKET
 

m SHORT TERM TRADING
a.) Intraday Trading
b.) BTST
m LONG TERM TRADING/INVESTMENT
(Delivery Based)
m MARGIN AVAILABLE FOR INTRADAY &
DELIVERY BASED TRADING(Type of Trading
Terminals i.e NEAT & ODEAN)
m CRUCIAL ROLE OF RMS(Risk Management
System)
   
 

NSE

NSCCL
CLEARING
DEPOSITORIES (National Securities Clearing
BANKS
Corporation Limited)

CUSTODIANS/CLEARING MEMBERS
      

Ñ. TRADE DETAILS FROM NSE TO NSCCL

2. NSCCL NOTIFIES DETAILS TO CUSTODIANS/CMs. BASED


ON AFFIRMATION, NSCCL DETERMINES OBLIGATIONS

3. NSCCL PAY-
PAY-IN
IN--ADVICE OF FUNDS/SECURITIES

4. CUSTODIANSINSTRUCTIONS TO BANKS FOR PAY-


PAY-IN-
IN-TIME

5. CUSTODIANS INSTRUCTIONS TO DEPOSITORIES FOR


PAY--IN-
PAY IN-TIME

6. PAY-IN OF SECURITIES(NSCCL ADVICES DEPOSITORIES


PAY-
TO DEBIT POOL ACCOUNT OF CUSTODIANS & CREDIT
INTO NSCCL)


[. PAY-IN OF FUNDS(NSCCL ADVICES CLEARING BANKS TO


PAY-
DEBIT ACCOUNT OF CUSTODIANS AND CREDIT INTO
NSCCL)

8. PAYOUT OF SECURITIES(NSCCL ADVICES DEPOSITORIES


TO CREDIT POOL ACCOUNT OF CUSTODIANS AND DEBIT
NSCCL¶S ACCOUNT)

9. PAYOUT OF FUNDS(NSCCL ADVICES CLEARING BANKS


TO CREDIT ACCOUNT OF CUSTODIANS AND DEBIT
NSCCL¶S ACCOUNT)

Ñ . DEPOSITORIES INFORMS CUSTODIANS

ÑÑ. CLEARING BANKS INFORM CUSTODIANS/CMs



  

m FORWARD CONTRACT
m FUTURE TRADING
a.) Index Future
b.) Stock Future
m OPTIONS TRADING
a.) Call Option
b.) Put Option
 





m SPOT PRICE
m FUTURE PRICE
m EXPIRY(NEAR, NEXT, FAR)
m LOT SIZE
m MTM
m MAINTENANCE MARGIN
 



m AMERICAN OPTION(CAN BE EXERCISED
ANYTIME TILL EXPIRY)
m EUROPEAN OPTION(CAN BE EXERCISED
ONLY ON THE EXPIRATION)
m STRIKE PRICE
m AT THE MONEY OPTION(SPOT=STRIKE)
m IN THE MONEY OPTION(SPOT>STRIKE)
m OUT OF THE MONEY
OPTION(SPOT<STRIKE)
   

‡ SUPPORT AND RESISTANCE

‡ MOVING AVERAGES

‡ MACD

‡ PRICE VS OPEN INTEREST

‡ PDHLC THEORY

‡ BREAK OUT LEVELS


THANK YOU

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