Blog Updates

9 Movies Every Trader Must Watch

By | Trading | No Comments

What kind of a monster doesn’t love watching a good movie? So we compiled a list of what we thought were the best flicks that traders could relate to. There is a fair possibility that we have missed out on a few of them so please feel free to add in your cinematic delights to this list in the comments section and we will keep adding them to list time and again. Read More

Box: Our Brand New Back-Office. Here’s Everything you Need to Know

By | Trading | No Comments

Box is Trade Smart’s new and efficient back-office. It’s exactly what it has been named, a box where you can find a record of every trade that you placed in the form of reports that are easy to understand. All your current holdings, trades, open positions and profit loss reports. It’s quick, easy and exactly what you need. No confusing fancy charts, promise.

You can find the details to log into the platform at the end of this post Read More

Change in Lot Size for Nifty, Bank Nifty and NSE Securities

By | Trading | One Comment

Recently NSE released a circular stating a change in the lot sizes. Kindly go through the following email to keep yourself updated with the changes and the steps to be taken.

What was the official communication?

The lot size of NIFTY, BANK NIFTY and some Futures stocks will be revised as per the NSE Circulars dated August 07, 2015 and August 14, 2015. These circulars include an Index Lot Size Change Circularthat talks about the old and revised lot sizes for indices and a Stocks Lot Size Change Circular which gives a comprehensive list of all stocks whose lot sizes have changed. Read More

Spread Orders: The Smart Way of Hedging Positions

By | Trading | 2 Comments

spread orderIntroduction
Futures are a risky matter. So much so that even the veteran players are worried about taking a hit (loss) and as a matter of fact, they often do. Paul Tudor Jones, one of the most successful futures traders on the Dow indices, said never to focus on the money that you are making but to focus on the money that you are losing. The money that you have at risk is at the center of any successful trade strategy. Read More

Stop Loss Orders Made Easy

By | Trading | No Comments

Stop-losses are the easiest and simplest way at protecting yourself form falling bottomlessly in a bad market situation. They can be applied on a bought or short sold instrument and can be modified at any point of time in a single day as they are day orders. We wrote this blog to help you understand stop-loss orders better. Read on to find out how it works. Read More

Cover Orders Explained

By | Trading | One Comment

COVER ORDERs Explained

Market orders have always been a vulnerable affair, to an extent for the equities and a great deal more for Futures and Options and in that volatility, we are always looking for some “Cover”, some sort of safety net that can protect us from a free-fall. That is exactly what a cover order does. Read More

Circuit Breakers – Traders’ Safety guard

By | Trading | No Comments

Circuit BreakersA circuit breaker is a fundamental concept wherein trading is frozen for a few hours, or in a worst case scenario, the day’s trade is suspended for a stock if its value increases beyond or decreases below a predetermined value, which is calculated based on the previous day’s closing price. Circuit breakers are specific to exchanges, wherein, the percentage change in value after which it gets activated varies with stock exchange while some stock exchanges may not even have this concept. E.g., Bombay Stock Exchange has an upper circuit breaker of 20% and a lower circuit breaker of 10%. If a security closes at Rs.200 on a day and if the stock reaches Rs.240 on the next day, then the circuit breaker is auto activated and trading of that stock is halted. Similarly, if the stock falls to Rs.180, again trading is halted. Read More

Bracket Orders and Trailing Stop-loss Explained

By | Technical Analysis, Trading | 38 Comments

Bracket Orders

The world moves too fast and is often too difficult to keep track of. Markets move even faster and in all this turmoil, bracket orders come as a great boon in managing your risks. As the name goes, Bracket orders “bracket” your “orders”. However stupidly simple that may sound, that’s what it actually is.

Benefits of Bracket Order

  1. Bracket orders make sure that your profit or loss lie between two limits of an acceptable profit and bearable loss that you set.
  2. Because the maximum loss is limited,the margin requirements are really low (between 2% and 2.5%) compared to the 10-11% margin requirement in other risk based trades.

Read More

Collar Strategy

By | Technical Analysis, Trading | No Comments

It remains a well-known thing that the derivatives are wonderful instruments to take advantages of the different phases in the markets. They not only offer leveraging advantage but also ensure efficient hedging opportunities in the overall portfolio. Let us discuss one such options strategy which not only hedges a naked long position against downside risk by offering insurance but also finances the cost of that insurance. Sounds interesting? This strategy is termed as a Collar; let’s drill down into the strategy for a better understanding. Read More

Double Top and Bottom formations

By | Technical Analysis, Trading | No Comments

The theory of technical analysis predominantly takes human psychology into account where it is believed that the price patterns are result of how market responds to similar situations that arise time after time. In other words it is believed that the crowd reacts similarly in given circumstances that lead to predictable price pattern formation, which form the base of a chartist or a technical analyst. Let us discuss and understand one such price pattern that despite remaining one of the favorites in the financial markets is ironically interpreted incorrectly more often than not. Read More

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