TERMINOLOGY USED IN MARKETS

INVESTMENT :

It is when we buy shares as the purpose of investment that is we buy shares and get them transfer by our name to our demate account . It is usually done to gain long term gains and grow ur capital with growth of company and get regular dividends. It may be short term (1-3 months) mid term (6-12 months) and long term (more then 1 year) .It is mostly considered safe .Just be careful while selecting your portfolio and profile.

TRADING :

Trading is done usually to to gain fastly. It is considered to be of high risk as we all know the fundamentals (HIGH RISK HIGH GAIN ) , So u could end up a day gaining some good amount as well may be loosing (bad luck that what we say when we loose) .

So what is TRADING ?

It is done at the market time say we buy some shares of bajaja auto @ 2300 rs ..after and after some time say within the same day and market hours it has gained 50 rs ..now priced at 2350 , so now we can sell them .how much we gained say for 100 shares 100X50= 5000 rs. For trading usually the broker charge us very low , and for saome reason say if the market price got lowered then our buy price we have to book the loss.

We can also carry our deal that is buy deal for selling say tommorrow or some other day but that will cause the shares as to be delievered, so we may have to pay some good amount of commision to our broker so that will too add up in our buy price.

Trading within same day i.e buying and sellingh with in same day is usually called as intrady trading .
i.e we have to buy and sell at the same day.

For this we get some limit from our brokerage after giving them some deposit and we can buy and sell within that much of amount , for eg after giving them a deposit of 30,000 we get the limit of 200000 so we can buy and sell within that limit only .


FEW TERMS USED in MARKETS 
 
CMP : Current Market Price (Termed as price on whicg the share of a company is trading ).
.
BTST : Buy Today Sell Tomorrow ( when u buy something for today for selling tomorrow also called overnight positions)

STBT : When u sell something today to buy tommorrow. same as BTST but opposite.


Use these words in the market.