Basic Queries on Online Trading

#1
Hi Traders,
I am pretty much new to this Trading world and to this forum :eek: Hope experienced traders will help me with all the below questions I have.
I have recently taken a Demat acct @ Chennai which offers me a good brokerage. I am planning to invest app: Rs 8000 PM initially.

Request guys here to help me with the below questions. I use software provided by my Broker

1. Is stock same as Equity and is it same as share?
2. How do I know the difference between Equity and F&O
3. Is F&O same as Derivative?
4. How do know which shares to buy to get a profit.
5. I have initially transferred around Rs 5000 to my acct and just bought 10 shares of XXX stock @ 274 per share. Now delivery being 0.2%,how much will be debited from my demat acct. Just wanted to know as how do we calculate?
6. How to go with Intraday trading? I mean till now I just bought Equities worth Rs 2740 which is delivery type but I am not sure as how to trade the Intraday model? Is it using the same software ? Should I select something else while buying the shares?
7. Can I buy the same share using Delivery or Intraday model? Meaning can I buy some XXX share and keep it for x days and sell and at the same time, can I buy the same share for Intraday model? Basically I want to know ( For example: will a single type of share ( say: Justdial ) be eligible for Delivery and Intraday type of trading ?
8. I have placed an order and it is fully executed. When will I see the debit in the amount and credit of the purchased shares?
9. What are these terms [ BookedPL; MtmPL] referring to? I see them in the order which I placed ( Net Positions )
10. What is SquareOff? How exactly does that work and when should I be using it?
11. What is Effective Trade Price Calculator and where can I download it? Why is it used?
12. Margin Table is very confusing. I see the below in Margin Table. Can some pls explain me what are these from Margin tables?
Opening Margin: Rs 5000
Holdings Margin: Rs 0
Additional Margin: Rs 0
Margin Blocked for Open Positions: Rs 684
Margin Blocked for pending Orders: Rs 0
Available Margin: Rs 4316


I know I am asking for too much of information here however once I get hands on, I might probably help others... Hence, thanks for the every single reply...
 
#2
OMG!! Not even a single guy who could respond to help me with the below queries.. Atleast could someone answer few of the above queries? :(
 

RAAMAKANT

Well-Known Member
#3
smiles123 ,
You will get many of the Answers of your Questions from the best friend of this Era.
GOOGLE , Just Google it.
 
#4
Hi Raamakant,

Thanks for taking time to reply. Atleast you replied.. I will definitely google and come back to this forum if I need any help!!
 

aryan.

Active Member
#5
4. How do know which shares to buy to get a profit.

You will need to learn fundamental analysis or technical analysis.

5. I have initially transferred around Rs 5000 to my acct and just bought 10 shares of XXX stock @ 274 per share. Now delivery being 0.2%,how much will be debited from my demat acct. Just wanted to know as how do we calculate?

Share price + brokerage + STT + tax will be deducted from your account.

Stay away from intraday trading till you learn the basics.
 

bunny

Well-Known Member
#6
1. Is stock same as Equity and is it same as share?
Yes for most practical purposes that you will undertake now

2. How do I know the difference between Equity and F&O
Google, if you are asking how derivatives are different from equities. But if you mean to ask whether how will you know where an item in the scrip-list is an equity or derivative item, the trading software will have columns showing that, either segment or series or something else depending upon how your broker has configured his software.

3. Is F&O same as Derivative?
Yes

4. How do know which shares to buy to get a profit.
Vast topic of stock analysis. Read in other sections of traderji about technical analysis, fundamental analysis, etc.

5. I have initially transferred around Rs 5000 to my acct and just bought 10 shares of XXX stock @ 274 per share. Now delivery being 0.2%,how much will be debited from my demat acct. Just wanted to know as how do we calculate?
Brokerage amount + service tax on brokerage. Other charges can be identified in your contract note.

6. How to go with Intraday trading? I mean till now I just bought Equities worth Rs 2740 which is delivery type but I am not sure as how to trade the Intraday model? Is it using the same software ? Should I select something else while buying the shares?
Ask your broker to explain the their software's interface for placing orders.

7. Can I buy the same share using Delivery or Intraday model? Meaning can I buy some XXX share and keep it for x days and sell and at the same time, can I buy the same share for Intraday model? Basically I want to know ( For example: will a single type of share ( say: Justdial ) be eligible for Delivery and Intraday type of trading ?
Trade only in shares belonging to EQ series(on NSE). Details of series can be obtained from NSE website.

8. I have placed an order and it is fully executed. When will I see the debit in the amount and credit of the purchased shares?
Your broker will provide to Risk management and surveillance(RMS) limits, holding, etc within the software. Ask him about the interface.

9. What are these terms [ BookedPL; MtmPL] referring to? I see them in the order which I placed ( Net Positions )
Booked Profit/loss is when you have close the trade. Mark to Market P/L is "notional" when the trade is still open.

10. What is SquareOff? How exactly does that work and when should I be using it?
Square off means closing all positions, long or short, intraday or net-wise as your broker may provide and/or you may select. It saves you from the trouble of manually checking your open positions and typing the orders.


11. What is Effective Trade Price Calculator and where can I download it? Why is it used?
If you buy the same shares at different prices and in different quantities, example: 50 shares @ Rs. 100, 30 @ Rs. 101, 20 @ Rs. 102, then the software will calculate the average buying price per share. Some brokers may also include levies of brokerage, service taxes, etc. Some brokers may even provide to calculate the break-even price for closing the position

12. Margin Table is very confusing. I see the below in Margin Table. Can some pls explain me what are these from Margin tables?
Margin is money available to trade. Some may call it clear balance



I know I am asking for too much of information here however once I get hands on, I might probably help others... Hence, thanks for the every single reply..
Asking questions is okay. But most of the questions you asked should have been asked to your relationship manager at the brokers office. Apart from it being his duty to answer your queries, he will be in a much better position to explain their own system and software. Not all brokers work exactly the same. Minor differences exist.

And since you have expressed your desire to help other in future, I hope you survive this disguised work of stock markets to stick here. All the best.
 
Last edited:
#7
Bunny & Prem,

Yes, you answered all my queries :)

Thank you is a very small word for your help however I can't stop typing here. I must say
" A BIG THANK YOU SIRs' "

Bunny, I will start bugging my RM now. and of course, I will help others as much as I can.

Thanks
 

Similar threads

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?