EQUITY TRADING

Equity trading involves the buying and selling of company shares in the stock market. It is a fundamental aspect of the financial markets, providing investors with opportunities to invest in and benefit from the growth of publicly traded companies. Here are some key aspects of equity trading:

DELIVERY TRADING

Delivery trading refers to the purchase of shares with the intent to hold them for a longer duration. In this type of trading, investors take actual delivery of the shares in their Demat account, typically holding them for weeks, months, or even years. The primary aim of delivery trading is to benefit from the long-term appreciation in the stock’s value and to earn dividends declared by the company.

INTRADAY TRADING

Intraday trading involves buying and selling shares within the same trading day. The primary objective is to capitalize on short-term price movements, often driven by market news, trends, and technical analysis.

Short-term Gains: Ideal for traders looking to make quick profits from daily market fluctuations.
Leverage: Often involves the use of margin, allowing traders to control larger positions with a smaller capital outlay.
No Overnight Risk: Positions are squared off before the market closes, eliminating the risk of adverse price movements overnight.

MARGIN TRADING

Margin trading allows investors to buy more shares than they could with just their available funds by borrowing money from their broker. This method amplifies both potential gains and potential losses.

Increased Buying Power: Enables investors to take larger positions with limited capital.
Interest Cost: Borrowed funds incur interest, which must be factored into the overall cost.
Risk Management: Requires careful risk management and a thorough understanding of margin requirements and potential margin calls.

SMALLCASE

Smallcase is a modern investment product that allows investors to invest in a portfolio of stocks or ETFs that reflect a specific theme, strategy, or objective. Each smallcase is curated by financial experts and provides a diversified investment approach.

STOCK LENDING AND BORROWING MECHANISM (SLBM)

SLBM is a mechanism that allows investors to lend their idle shares to other market participants for a predetermined period in exchange for a fee. Borrowers use these shares for purposes such as short selling or meeting delivery obligations.

Additional Income: Lenders earn a lending fee, providing an additional income stream from their existing portfolio.
Temporary Ownership Transfer: The ownership of shares is temporarily transferred to the borrower, but the lender retains all benefits such as dividends.
Regulated Process: Conducted through a regulated framework to ensure the safety and transparency of transactions.

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