Hey All,      I hope you would enjoyed and understand the previous blogs. You would have noticed the change in the title. Yeah!!! It says that we are going bit deeper in to the topic.     As of now we have seen (I hope) almost all basics of the equity market from the beginners perspective. Whatever we have seen till last post all were related to the Equity cash market. Today we are going to see about the segment called "Derivative" in equity market. Derivative Market:       Values for Derivatives is decided based on the price of a stock. Derivative market have two important things to understand, they are Futures and Options. Futures: Value of Future is derived based on the price of the stock. Some times there might be a difference between a stock price and Future price, it depends on many factor. Futures are available only for a contract, we can't hold it for a long term or beyond contract. Futures will be available only in l...

I hope we can use this post for referring the technical terms that is used frequently in our trade related blog. CMP - Current Market Price Target (TGT) - Price which the share will reach Stop Loss (SL) - Till how long we can hold the share if the price dips from CMP TSL (Trailing Stop Loss) - Moving the SL to minimize the loss or maximize the profit. Go Long- Buy the share Go Short - Sell the share after or at a given price. CTC - Cost to Cost (Same as your Buy or Sell price) BTST - But Today Sell Tomorrow STBT - Sell Today Buy Tomorrow Exit - Exit from the specific trade Intraday - Trade is valid only for a given day. Positional - Trade is valid till it reach target or stop loss. We will keep adding the terms as we learn. Please feel to pour your comment, so I will modify the blog accordingly and we can make sure all are in same page.