Squaring off is the term used when you want to close an existing position. If you own a stock, squaring off means selling it. This is not to be mistaken as shorting the stock; it’s merely terminating your current long position.
Repurchasing stock when you are short on it is the same as squaring off a position. It is important to note that in doing so, you are not taking any new long positions, simply closing out your existing ones.
This is an intraday position, where one opens a trading order with the expectation that it will be offset on the same day. Short positions in stocks are usually of this type.
OHLC in stock prices is a term for open, high, low, and close. In the technical analysis module, we will cover this topic in greater detail. For now, the opening price of the stock is at what it starts trading during the day, while the highest price reflects the most expensive point of trade during that period; low indicates the least expensive transaction and close is when trading ends at a given amount. To illustrate this better, on 17th June ACC had an OHLC of 1486, 1511, 1467, and 1499.
Volume is an integral part of the technical analysis module that we will be delving into. Volume denotes the total transactions (buy or sell) for a stock on a particular day. As an example, on 17th June, ACC had a volume count of 5, 33,819 shares.
A market segment is a subset within which a particular type of financial instrument is exchanged. The risk and profitability of each instrument can vary. Exchange operations are carried out across these primary segments.
The capital market involves the trading of securities such as stocks and ETFs. Purchasing or selling shares of a company means you are engaging with this market segment. Shorting stocks also fall into this sector, as well as being called the spot market at times.
Futures and Options often referred to as equity derivatives, are the markets in which leveraged products are traded. The derivatives module (including futures & options) provides a more detailed overview of this segment.
The CDS market is where currency pairs like USD INR, EUR INR, and JPY INR are traded by means of futures and options. It is the currency derivatives segment.
The Wholesale Debt Market (WDM) manages all fixed-income securities such as government securities, treasury bills, bonds issued by a public sector undertaking and corporate debentures. Companies even issue corporate bonds as part of the WDM.
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