Basics of Financial Market
Basics of Financial Market
Basics of Financial Market
mSECURITIES MARKET
a.) PRIMARY MARKET
b.) SECONDARY MARKET
mBSE
mNSE
mLARGE CAP, MID-
MID-CAP &
SMALL CAP
m MARKET INDICATORS
m Interest Rates,
m Inflation,
m CRR,
m SLR,
m Money Supply etc.
b.) SENTIMENTS±
SENTIMENTS±
m MOMENTUM INDICATORS±
INDICATORS±
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
3. NSCCL PAY-
PAY-IN
IN--ADVICE OF FUNDS/SECURITIES
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)
MOVING AVERAGES
MACD
PDHLC THEORY