Commonly used market terminologies and their associated concepts part 3
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Table of Contents : Commonly used market terminologies and their associated concepts 1. Commonly used market terminologies and their associated concepts part 1 2. Commonly used market terminologies and their associated concepts part 2 3. Commonly used market terminologies and their associated concepts part 3 4. Commonly used market terminologies and their associated concepts part 4 4. Commonly used market terminologies and their associated concepts part 5 |
Upper and Lower Circuit:
On any given selling day, the exchange sets a price range in which the stock can be bought and sold. The upper circuit limit is the highest price that the stock can go up or down that day. The lower circuit limit is the lowest price that it can go down or up. Based on how the exchange chooses stocks, the cap is set at 2%, 5%, 10%, or 20%. These rules are put in place by the market to keep stock prices from changing too much when there is news about the company. When it comes to trading restrictions, the rules for derivatives stocks or index
Long Position:
Anytime you say "long position" or "going long," you're talking about the direction of your trade. Buying Infy shares or trying to buy them means you are long on Infy or want to go long on Biocon. With a long bet on Nifty, you bought the index with the hope that it will go up in price. Holding on to a stock or index is called being positive.
Short Position:
If you short a stock, you think it will go down in value. If the stock price goes down, you make money. If the price of the stock goes up after you short it, you will lose money.If you short a stock, you must buy it back the same day before the market closes, unless you short with futures.
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