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     GLOSSARY : S
 
 
   A   ||  B  ||  ||   ||  E > G  ||  H > I  ||  L > M  ||  N > O  ||  P > R  ||  S  ||  T > Z  ||
S&P CNX Nifty | S&P CNX 500 | Sector | Securities | Securities and Exchange Bord of India (SEBI) | Seller | Selling Off  | Selling on the Good News | Share | Short | Short Covering | Short Position | Short Sale | Short-term Gain | Speculators | Split | Spread | Square | Standard Deviation | Stock exchanges | Stock index future | Stock Option | Stop | Stop Limit Order | Stop Loss Order  | Stop Order | Stochastic | Straddle  | Strike Price | Subjective | Subsidiary | Support | Swing
GLOSSARY
  S&P CNX Nifty

'C' stands for CRISIL, 'N' stands for NSE and ‘X’ stands for Exchange or Index. The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services. S&P CNX Nifty comprises 50 stocks and is a market capitalisation weighted index. Stocks are selected based on their market capitalisation and liquidity. The S&P CNX Nifty represents about 46% of the total market capitalisation of the stocks listed on the Indian bourses

  S&P CNX 500
The S&P CNX 500 Equity Index comprises 500 stocks and is a market capitalisation weighted index. Stocks are selected based on their market capitalisation, industry representation, trading interest and financial performance However, the overriding need has been to ensure that the industry weightings in the index dynamically reflect the industry weightings in the market. The S&P CNX–500 Equity Index currently contains 79 industry groups (S&P CNX Industry Indices) representing over 73% of total market capitalisation and over 97% of total turnover making it an optimal market benchmark. The Index is desegregated into 79 industry indices with each industry index being a representative benchmark of its respective industry.
  Sector

It is a group of companies that generate revenue in similar ways, and tend to rise and fall at the same time of the economic cycle. Sectors are commonly broken down into smaller groups, called industries .

Sector investors watch for strength or weakness in the various sectors, before making investment decisions. The relationship between sector strength or weakness, and the business cycle, is called Sector Rotation

  Securities
Documents proving debt or ownership that may be bought or sold.
 
Securities and Exchange Bord of India
The government agency responsible for regulating and supervising the securities industry
  Seller
A market participant who looks to sell a financial instrument. Their motivation will be to profit from a fall in the price, take profits on a long position or to cut losses on a long position.
  Selling Off 
Selling securities to prevent losses from continued price declines.
  Selling on the Good News
Selling a stock right after good news has driven the price very high.
  Share
A certificate representing one unit of ownership in a corporation.
  Short
To sell a financial instrument that is not already owned with a view to buying it back later at a lower price.
  Short Covering
Trades that reverses or close out short-sale position. In the stock market for instance, share are purchased to replace the shares previously borrowed.
  Short Position 
The position that results from short selling that has not yet been covered. Often defined in terms of the number of stocks that are sold short.
  Short Sale
Borrowing a security from a broker and selling it, with the understanding that it must later be bought back and returned to the broker on the same day.
  Short-term Gain
A capital gain on an investment which was held for less than One Year or as per the guideline of the Income Tax authority from time to time. The tax rate on a short-term gain is usually higher than that of a long-term gain.
  Speculators
Investors who seek large capital gains through relatively risky investments.
  Split 
The division of the outstanding number of shares into a higher number of shares. The market price per share drops proportionately. This is generally done to make a stock with a very high price more accessible to small investors. Current owners of the stock maintain the same equity by receiving the proportionate number of additional shares.
  Spread 
The difference between the bid and the ask price.
  Square
A position where a trader is neither long nor short, i.e. not in the market. Also known as being flat or having a neutral position.
  Standard Deviation 
A statistical measure of the volatility
  Stock exchanges
Facilities at which stocks and debenture are traded. The New York Stock Exchange (NYSE) is the largest of the nine stock exchanges now operating in the United States.
  Stock index future
A contract reflecting the market price of a selected group of common stocks. These stock index futures represent a wide range of stocks and therefore reflect the overall movement trends of the market.
  Stock Option
Contract allowing holder to buy or sell a given number of shares of a particular stock at a given price by a certain date.
  Stop

An order placed in a futures market to buy or sell if the market trades at a specified price. In stock markets, and any other market where stop orders are not accepted, ‘stop’ is used to denote the level at which a trader intends to give a buy or sell order if the market trades at that level.

Stops are most commonly used to limit losses on an open position and, in this case, are often referred to as a ‘stop-loss’. However, stops may also be used to close a profitable trade (take-profit stop) at a target level or to initiate a trade, say on a price break out from a pattern.

A stop order may also be used to enter a trade if an instrument trades at the level specified.

  Stop Limit Order 
A order to buy or sell which is not to be executed until the market price reaches the customer's defined price, known as the stop price. When this occurs, it becomes a limit order.
  Stop Loss Order 
A sell stop order for which the specified price is below the current market price. Done to prevent further losses or to lock in profits.
  Stop Order 
A buy or sell order which is not to be executed until the market price reaches the customer's defined price, known as the stop price. When this occurs, it becomes a market order.
  Stochastic
The name of an indicator that measures momentum of price change with reference to how near the market closes to the high or low of the recent range.
  Straddle 
The simultaneous purchase of an equal number of puts and calls, with the same strike price and expiration dates.
  Strike Price 
The specified price at which a call option buyer can buy the underlying security or a put option buyer can sell the underlying security
  Subjective
Those parts of analysis that rely upon the opinion or judgment of the analyst — the opposite of objective.
  Subsidiary 
A company in which a majority of the voting shares are owned by another company.
  Support 
A tendency for a stock not to fall below a certain price. This is generally due to the stock being in short supply at that price.
  Swing
A general term for a price movement in one direction — essentially a short-term trend.