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Equity Trading

Equity or stock trading refers to the purchase and sale of a company’s stock listed on the exchanges like BSE/NSE. This can be done by opening a brokerage account with a SEBI registered brokerage house. Good discipline and detailed analysis can help you succeed in this segment of the market.

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Derivative Trading

This is defined as the trading in the financial products like futures and options which derive its value from the underlying asset. Being the margin-based product, it is one of the most interesting forms of trading with good leverage opportunities in hedging and speculation.

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Commodity Trading

An investment strategy which involves the trading of grown or naturally produced products like metal, food, or energy instead of stocks. In India, commodity trading is regaining its importance with benefits like liquidity, good margins, and innovative products. The prices of such commodities are driven by supply and demand.

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Currency Trading

This is one of the largest financial markets in the world with the strategy of buying and selling of currencies. A trader can convert one currency to another via currency trading in order to earn profits or for the purpose of hedging. They are traded in pairs of currencies and there are only four types of pairs traded in India.

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Algo Trading

Such trading is driven by predefined algorithms to identify the ideal time to buy and sell securities using complex mathematical tools. This helps the investor to keep a check on their emotions and become profitable with extensive backtesting without any hassles.

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Depository Services

Depository services help in keeping all the securities like shares, corporate bonds, government bonds, etc. in the electronic form. To avail such services, the investor has to open their accounts with depository via depository participant. This is similar to opening a bank account to keep your ideal cash.

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Currency Hedging

The use of a financial instrument like futures and options in the currency market to manage foreign currency exposure is called currency hedging. Owing to the extreme volatility of the forex market, hedging is vital to protect the investor’s position from an unwanted move in the exchange rates. They are used by a wide range of participants like investors, traders, and business owners.

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Private Client Group

PCG is the premium service provided to the elite group of investors for wealth creation purposes. This professional value service is offered to meet the customized requirement based on their goals, risk profile, and time horizon. Our extensive in-house research team is dedicated to serving the clients with exceptional returns in the market.

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Frequently Asked Questions

Equity Trading

What is the difference between stock and equity?

What is the difference between stock and equity?

What is the difference between stock and equity?

Stocks and equity are used interchangeably in the trading area jargon. Equity is the ownership of the assets that may have some sort of liabilities attached to them. It can be the capital invested by the owners in a company. Whereas the term stock refers to the traded equity, it is the ownership share in a company. Investors invest in stocks of companies, which they think might get a hike in the near future.

What is equity trading in India?

The stock market, also known as the equity market is a trading platform where company shares are traded. Buyers and sellers meet at the platform to buy and sell shares of the listed companies. This transaction of equities for investment is called equity trading. The Indian stock market features available equities for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). features

Derivative Trading

What is derivative trading in share?

Derivatives are financial instruments with no independent value of its own. The value of such securities is derived from the underlying assets like stocks, bonds, commodities, currencies, etc. They were initially developed for hedging but now account for two-thirds of total transactions globally. The two popular derivatives products traded in India are futures and options.

Can company trade in derivatives?

Yes, a company can buy and sell derivatives securities without registering itself as an NBFC. The NBFC (Non-banking Financial Cooperation) is an entity involved under the principal business of acquisition of shares/bonds, advancing loans, insurance business, trading in marketable securities, etc. If any company is not registered as NBFC under Companies Act, 2013, that means their principal business involves agriculture, industrial activity, trading of products (other than securities), providing services, or property dealing.

Is the stock a derivative?

No, stocks and derivatives are different securities while highly allied. The stock prices are derived from the supply and demand of the particular share, while the derivative prices are derived from that of the underlying. While the stocks are independently priced, the derivative is dependent. Basically, derivatives are the contracts between two parties whose price is determined by the underlying asset (like stocks, bonds, interest rates, etc).

Commodity Trading

Which commodity is best for trading?

With over 10 products that are offered in the country, it can be difficult to choose the most appropriate commodities for trading. For this purpose, the parameters like liquidity and volatility are considered. Crude Oil is the best commodity for trading in India followed by Gold. Such products boast diversity and growth along with rising demand over the years. The trading can be facilitated by the futures as well as spot contracts.

What are the commodities traded in MCX?

The MCX or Multi Commodity Exchange provides the option to trade in the array of products namely: Metal - Aluminium, Copper, Lead, Nickel, Zinc, Brass Bullion - Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal, Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000. Agro Commodities - Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castor seed, RBD Palmolien, Black Pepper. Energy - Crude Oil, Natural Gas.

How do I buy commodities?

Trading or investing in commodities can be challenging as compared to the stock of a company. This is because commodity trading involves products that are physical in nature. There are four major ways to include commodity in your portfolio. One is buying the commodity in the spot market with cash, two is trading via a commodity futures contract, three buying ETF units of the commodity funds, and fourth investing in the shares of those companies that produce the commodity.

Currency Trading

How do you trade currency?

Currency trading includes trading in pairs. For example - the English pound against the US dollar. It’s all about relative value and whether one currency is stronger than the other. Unlike the stock market, in the foreign exchange market, you have to sell one currency and buy the other. It includes taking stances while trying to extract profits.

Can I trade in forex with 100 dollars?

Yes. One can start trading with small balances. It gives you an idea of how the market works—most people who are new to forex try to start with small numbers so risks can be minimized. No matter the amount of money, since forex features trading using leverage, a small sum of money can control a much bigger financial position.

How do I start currency trading?

You can start by picking any currency pair you wish to trade-in. Beginners usually pick the English pound and the US dollar pair, since they are the major currency pairs and there is always a lot going on in those markets. If you trade in 25,000 units or less, you can trade them in zero spreads.

Algo Trading

Does algo trading work?

a. In simple terms, algo trading is making use of algorithms to structure as well as execute your trading strategies. To answer whether this works or not, put some highlights on the trading logoc. Algo Trading is responsible for about 60-75% of global trades while 40-50% turnover of Indian cash and derivatives market which is magnificent. If you are well equipped with notable coding skills (you may also outsource this to your broker) and your strategies are rewarding, you won’t find algo trading counterproductive. Since algo trading is free of human interventions, it can turn out to be even more beneficial as compared to manual trading.

Is algo trading profitable?

a. Algo trading can be immensely profitable due to several factors attached to it. Primarily, since this is technology-based trading the chances of any opportunity getting missed are almost zilch. Secondly, the speed of order execution is unparalleled as compared to manual ones which can altogether turn the deal from losing to winning in a jiffy. Next comes the ease with which the algo trading explore prices and provide liquidity. Finally, it comes with an advantage of no human intervention and hence no emotional conflicts whatsoever. Beyond the shadow of a doubt, algo trading can be conducive enough to be profitable in the market.

Is algo trading safe?

a. Since nothing in this world is perfect, algo trading also comes with some of the risks associated with it that can’t be ignored. To start with, the algo trading is completely dependent on your IT Infrastructure which can be problematic if the system is down due to any reason. Secondly, the system might not be configured to digest the unexpected happenings that are a part of the stock market. One of the other risks associated is the difficulty in tracing the error once coding and optimization are completed.

Depository Services

What do you mean by depository?

Depositories are institutions which hold financial securities such as shares, bonds, mutual fund units, equities in dematerialised form. They track and maintain the ownership records of these securities and also facilitate the trading of depository securities in electronic form. Two main depositories in India include: National Securities Depository Ltd. (NSDL) Central Depository Services Ltd. (CDSL)

What is the role of the depository?

Depositories are responsible for safe-keeping your securities and keeping a record of all your trades. The Depository System involves an electronic system that facilitates easy, paperless trading and faster settlement cycles.

Who is a depository agent?

A depository agent is also known as a Depository Participant (DP) and is responsible to coordinate between the depository and the investors. The relationship between the two is governed by an agreement made under the Depositories Act. A depository agent offers depository-related services to investors after obtaining a certificate of registration from SEBI.

Currency Hedging

What are the types of hedging?

The hedging can be divided into three types which will help investors protect their portfolio from unwarranted risks of currency, commodities, etc. i. Forward Contract: Over-the-counter contracts to buy or sell a commodity on the future date at a specified price. ii. Futures Contract: This is a standardized contract which works on the similar grounds as the forward contract. iii. Money Markets: Hedging can also be done with the money market instrument which have a maturity of one year or less.

Should I buy currency hedged ETFs?

The currency hedge ETFs are the funds that remove the currency risk of price fluctuations. ETFs are available for a number of underlying assets in the most major markets. This provides you with an opportunity to invest in the funds which were primarily accessed to only institutional investors. It provides you an opportunity to globally diversify your portfolio. The benefit of hedge ETFs is the cost-effectiveness, larger ETFs can hedge risk at fraction of hedging cost than cost incurred by an individual investor.

Should you hedge currency risk?

In order to mitigate the exchange rate risks and to know the certainty of payments. The hedging helps you in taking timely decisions as your business is immune to the currency’s fluctuation. There can be a time lag between your purchase and payment which can give rise to currency appreciation or depreciation. Such hedging will help your business to relieve from the constant process of tracking currency movements.

Private Client Group

What is the Private Client Group?

The Private Client Group is our premium advice service that’s dedicated to helping you reach your financial goals. It’s an exclusive advisory service reserved for clients who are looking for more than investments. When you need financial planning and advice to help for the next leg on your financial journey, the Private Client Group is here for you.

What benefits/advantages does Private Client Group offer me ?

We make available to our clients the best team of expert wealth managers. When you become our Privileged Client, you are assigned a highly qualified Relationship Manager that has extensive knowledge of the financial markets.Holistic view on the entire portfolio before providing comprehensive advice.

How often will I speak with a financial consultant?

Consistent communication is a hallmark of the Private Client Group. We will personally reach out to schedule reviews. Those reviews will keep you informed about your progress, give you an opportunity to discuss how things have or have not changed and whether your plan needs adjusting. You're always invited to reach out and speak with us between regularly scheduled reviews.

Disclaimer The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

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Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day.....issued in the interest of investors."

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