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A forex gain or loss typically happens when a company buys or sells in foreign currency. As the foreign currency fluctuates in comparison to the domestic currency, the value of the goods or services changes. For instance, if the Indian rupee strengthens in comparison to the US dollar after an exporter has made a deal, he would stand to make a forex loss. And if the rupee weakens then it means the exporter would make a forex gain. Courtsey : Upstox (start Karke Dekho) For more about Upstox - Read more...

A limit order provides an option to an investor or trader to buy and sell stocks at a particular price. For instance, assume that you don’t want to pay more than ₹92 for a stock. Then you can place a buy limit order of ₹92, which means that your order will be executed if the stock price falls at or below that level. Similarly, if you want to sell a stock at ₹100, you can place a sell limit order of ₹100. However, there is also a possibility that your limit order won’t get fulfilled, if the stock doesn’t reach the desired level. Courtsey :  Upstox (start Karke Dekho) For more about Upstox -  Read more....

When a company decides to list on stock exchanges through the IPO route, it offers shares which are open for subscription. Following this, investors (individual as well as institutional) bid for the shares of the company. If the company receives more bids than the shares it has offered, it means that the IPO has been oversubscribed. Investors must look at the total subscription numbers to find out if an IPO has been oversubscribed as the exchanges also provide category-wise numbers. Oversubscription indicates high demand for the company shares and a potential for listing gains. Courtsey : Upstox (start Karke Dekho) For more about Upstox - Read more....

Interest-coverage ratio reveals whether a company will be able to pay interest on its debt. It is calculated by dividing a company’s earnings before interest and tax by the interest due. A higher interest-coverage ratio is considered to be an indicator that a company is in a strong financial position. Lenders and investors can use it to determine a company’s ability to survive hardships. Courtsey : Upstox (start Karke Dekho) For more about Upstox - Read more....

Targeted Long-Term Repo Operations (TLTRO) refers to a central bank’s attempt to spur economic growth by infusing liquidity. Under TLTRO, a central bank offers money to banks at the repo rate for a fixed period and takes government securities as collateral. Banks can use this money to invest in specific sectors through debt instruments. This encourages banks to lend more as they receive money at a cheaper rate and for a longer duration. Courtsey : Upstox (start Karke Dekho) For more about Upstox - Read more....

Intraday trading refers to the style of short-term trading where the trader buys or sells a stock and then squares off the position on the same day before the market closes. For instance, a trader may buy a stock at ₹100 at 10:00am and then sell it off at ₹103 by 10:30am. The objective of intraday trading is not to invest for the long term but to trade for quick gains. The biggest advantage that traders see in intraday trading is that it does not block the capital after the market closes for the day. Further, not taking positions overnight also helps in eliminating risks of unfavourable opening on the next day. Meanwhile, one of the disadvantages of intraday trading is that it gives very little time (only a day) for the position to become profitable. Courtsey :  Upstox (start Karke Dekho) For more about Upstox -  Read more....

Street estimate refers to the average of analysts' forecasts regarding a company’s revenue, profit or any other metric. These estimates are specifically used for a company’s financial results. A comparison between actual results and estimates helps traders and investors to see whether a company has outperformed or underperformed against market expectations. An outperformance is generally handsomely rewarded with an increase in share price. Similarly, shares of a company fall when it fails to meet the street’s expectations. Courtsey :  Upstox (start Karke Dekho) For more about Upstox -  Read more....