The three important
segments in which the traders can trade in the Equity markets are Cash Segment,
Futures Segment and Options Segment. In the Cash Segment the traders pay for the current price of the stocks
listed on the Exchange. The stocks are bought and sold based on the current
market price of the Stocks. Also the market price of the stocks on the exchange
continuously fluctuates. This is due to the change in the demand and supply for
the stocks of the company. For example if the demand of the stocks of
particular company increases so will the price will increase. Similarly if the
demand of the Stocks of a particular company decreases the price of the stock
will go down. This process will go on endlessly.
In the futures segment
a contract is signed between the buyer and seller to buy and sell on a future
date. The prices involved are also future prices. The prices of the future contract
also changes due to change in the demand and supply. In case of options the put
and call can be purchased. One gets benefitted from the Put when the market
goes down and gets benefitted from call when the price goes up.
With the above all
segments the trader can opt to trade in the Intraday, Short Term and long term
styles. The Risk Profile is different for the three trading styles. With the intraday trading as having the maximum
potential risks and the long term investments having minimum risks. The new trader
can take the help of some financial advisory firm like Money Classic Research which is reputed and also SEBI registered
and ISO certified. The advisory firm Money Classic Research provided stock market tips in the form of equity tips and Intraday Trading tips. Money Classic Research has been serving its
clients satisfactorily for many years now.
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