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Showing posts with the label Circuit on the Listing day of a Stock

TRADING BASICS FOR BEGINNERS INVESTING

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  INTRODUCTION TO TRADING BASICS FOR BEGINNERS INVESTING Understanding Trading: Definition and Purpose Trading is a fundamental aspect of financial markets, involving the buying and selling of assets like stocks, bonds, commodities, currencies, and derivatives. But what exactly is trading, and why is it so crucial in our economy? Let’s delve into its definition, purpose, and the mechanics behind it. What is Trading? At its core, trading is the exchange of goods or services. In financial markets, this exchange usually involves assets that have intrinsic value. Here’s a breakdown of key components: Assets: These can be tangible (like commodities) or intangible (like stocks and bonds). Traders seek to buy low and sell high, capitalizing on price fluctuations. Market Participants: This includes individual investors, institutional investors, brokers, and market makers. Each participant plays a role in the liquidity and price discovery of the market. Types of Trading: Day Trading: Involves b

Upper Circuit on the Listing day of a Stock

  Upper Circuit on the Listing day of a Stock Is there no upper circuit on the listing day of a stock? On the listing day of a stock, there typically isn't an upper circuit limit. This means that the stock can experience significant price movements in either direction without a restriction. However, after the listing day, exchanges often implement circuit breakers, which can include upper and lower price limits to curb extreme volatility. The absence of an upper circuit on the listing day allows for price discovery, enabling the market to determine the stock's value based on demand and supply dynamics. After the first trading day, though, circuit limits help maintain orderly trading and protect investors from extreme price swings. Always check with the specific exchange for detailed rules and regulations, as they can vary. READ MORE CTA................. Hey guys, if you liked the post then do not forget to follow me, upvote ,comment and share the post with your dear friends. Pl

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