The Terminology/Concepts Thread

[dragonball123]

Hi,

I believe there should be a terminology thread which should explain terms and lingos. People should post in this thread the terms they dont know and the veterans may reply with their 'gyan'.
(Please delete this thread, if deemed so.)

Anyways here are my doubts:
1) What are various ways of gold trading thru demat/trading acc? I have heard about e-series and futures & options. Can someone explain how exactly can i trade in various gold forms?
2) What is 'initial margin' in demat account opening? How exactly my bank cash & demat account is linked? If i want to buy say 10shares of Rs.10 each, how & when exactly is the Rs.100 transfered from my bank to my demat account?
3) In India, returns from which investments are tax free (apart from those under 80C/CCF)? Like stock returns after 1yr, SIP returns, etc.

 

[rptrades]

Good Initiative.:clapping:
Will help newbies a lot.
Best Wishes.:thumb:

 

[lonsharim]

Can this thread include abbreviations people use on this forum? There is a wealth of information on this forum thats fantastic for someone wanting to learn. Unfortunately sometimes the lingo and the abbreviations is something new people like me find difficult to understand.

Here are some things I am trying to find out

EMA - I now understand it means Exponential Moving Average. I have a NOW terminal and I don't know if I can get EMA from there. I also understand that some charting softwares provide this information and others don't.

EOD - I am guessing this is End of Day

OHLC - Opening, High, Low and Close
Futs - Refers to futures

These are some that I think I have figured out. There are others I am still trying to understand.

AFL - Some sort of script? If yes, What softwares use it
SAR? No idea yet what that means
SL or SLs for traders?

If its OK, I can continue to post expressions, abbreviations etc that I don't understand.

Many thanks, this is a great site.

 

[Sunny1]

AFL= amibroker formulea languege... used to indicator/etc etc for amibroker sofware

SAR = Stop and Reverse .....when you tarde hit SAR it mean you will squre off your postition and take opposite trade ...that is closing long and going short and vice versa

SL = Stop loss ...if your trade goes wrong ..how much you can bear ...

 

[dragonball123]

Sure, please go ahead and post acronyms too.

By the way, i had posted several questions about a week back and sadly almost none of them have been answered!

 

[lonsharim]

Hi,
3) In India, returns from which investments are tax free (apart from those under 80C/CCF)? Like stock returns after 1yr, SIP returns, etc.

Don't know the answers to your other questions but I think I can attempt this.

Firstly, tax free investments (80c) should not be confused with tax free returns. Most forms of returns are taxed either before the money reaches you or after.

Selling stock for example and you are liable for a capital gain or loss

Get dividend from a stock for example, and you are already taxed before you get the dividend in your hand. The company whose stocks you hold will pay 15% dividend distribution and 3% surcharge.

Another example is mutual funds. If you hold on to mutual funds for over a year you dont pay any taxes on capital gains but you pay if you hold it for less than a year. I think the direct tax thats going to be introduced in 2012 will do away with this. But for now, you can sell mutual funds held over a year without attracting taxes.

Dividends from mutual funds are not taxed from the end users but debt-oriented funds pay dividend distribution.

cheers
lonsharim