Share market terminology for beginners

  1. Stock Markets Basic
    1. Invest:3 benefits of investing for your future
    2. Types of Investment Diversification asset classes
    3. What is the share market? What Does It Do and How Does It Work with examples
    4. SEBI What is Securities and Exchange Board of India
    5. Stock Broker Financial Intermediaries or Market Intermediaries role in share market
    6. Depository and types of Depository Participants in India
    7. ICCL, NSE Clearing Limited and Bank’s role as Financial intermediary
    8. Angel Investors What are their roles with examples
    9. Venture Capitalist Who Are They and What Do They Do
    10. CAPEX Understanding Capital Expenditure with examples
    11. Private Equity Explained Understanding PE With Examples
    12. Initial Public Offering (IPO): What It Is and How It Works
    13. Launch IPO Why Do Companies Go Public
    14. IPO process how Initial Public Offering works in India
    15. What is IPO Key Terms Related to Initial Public Offering
    16. What is the share market?
    17. Share price understanding how does prices increase or decrease with examples
    18. Share trading: How Does It Work? with examples
    19. Types of traders in share market
    20. Market Index How Indexing Works, Types, and Examples in share market
    21. Share market indices importance and key terms
    22. Index construction methodology
    23. Share market terminology
    24. Share market terminology for beginners
    25. How to Trade Shares for Beginners
    26. Clearing and settlement process in the Indian Share market
    27. Stock selling learn What happens when you sell a stock
    28. Corporate actions in share market and impact on prices
    29. Bonus Issue of Shares Explained and How They Work
    30. Stock Split and Buyback of Shares What you need to know
    31. Monetary Policy by RBI Repo Rate, reverse repo rate, Cash reserve
    32. Inflation and IIP explained with examples
    33. Purchasing Managers Index, Budget, Corporate Earnings Announcement and Non-Financial events
    34. Stock market basics for beginners
    35. Offer for Sale and Follow-on Public Offer explained with examples
    36. Rights Issue and its relevance to shareholders explained with examples
Marketopedia / Stock Markets Basic / Share market terminology for beginners
  1. Square off

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.

  1. Intraday position 

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.

  1. OHLC

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.

  1. Volume 

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.

  1. Market Segment 

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.

  1. Capital Market (CM)

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.

  1. Futures and Options (FO)

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.

  1. Currency Derivatives (CDS)

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.

  1. The Wholesale Debt Market (WDM)

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.