The two largest exchanges in the world by market capitalization, the NYSE and Nasdaq have also undergone and vast expansion in trading value in the past decade.
There are two basic ways to organize financial markets—exchange and over the counter (OTC)—although some recent electronic facilities blur the traditional distinctions. Exchanges, whether stock markets or derivatives exchanges, started as physical places where trading took place.
NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are India's two major stock exchanges. NSE is known for higher liquidity and faster trade execution, while BSE is the oldest exchange with a wider range of listed companies.
A bear market is a 20% downturn in stock market indexes from recent highs. A bull market occurs when stock market indexes are generally rising, eventually hitting new highs. Historically, bull markets tend to last longer than bear markets. Bear and bull markets can affect investor confidence and behavior.
Although the NASDAQ makes more trades per day, the NYSE's market capitalization far exceeds that of the NASDAQ. The two exchanges also have different trading models. The NYSE has a hybrid trading model that uses both people and technology, whereas the NASDAQ is an entirely electronic exchange.
The Dow's stability is often taken to indicate traditional market confidence, while the Nasdaq's volatility highlights the performance of more innovation-reliant, high-growth sectors.
Eagle Markets (Rapidly rising stock prices with low volatility):Quantitatively defined as any period exhibiting trailing 1-year returns of +30% or greater without an intervening 10% or greater downward price correction.
FOMO (Fear of Missing Out) in trading refers to the anxiety and impulsive decisions traders feel when they fear missing out on potentially profitable opportunities. FOMO is driven by emotions rather than logic and can result in poor decision-making, overtrading, and financial losses.
What is Nifty? At its core, NIFTY's full form is National Stock Exchange Fifty and it represents the top 50 Indian company stocks traded on the NSE. It mirrors the market's movements, offering insights into the general market direction.
Why do traders prefer NSE over BSE? Traders often prefer NSE because of its faster, more efficient electronic trading system, higher liquidity, popular products like Nifty derivatives, and a robust regulatory framework that ensures transparency and reliability.
There are two types of exchange rates in the marketplace: fixed and free-floating. A fixed exchange rate is when a central bank or government ties a country's currency to another country's currency or commodity. Many currencies are pegged to the euro or US dollar.
The full form of OTC trade is Over-the-Counter trade. Is OTC trading safe? OTC trading carries higher risk compared to trading on formal exchanges. Due to limited regulatory oversight, lower liquidity, and less transparency, investors face greater chances of price volatility and fraud.
What's interesting is that McGinnis also came up with the less-used term, FOBO or the “fear of better options.” IF FOMO is about envy, then FOBO is about fear.
The fear starts to build up as soon as your positions start to lead to losses. This is when, despite a carefully planned trading strategy, many traders decide to take sudden actions. Here are some examples of trading decisions based on fear: Deciding not to enter into a trade because of the potential of losing.
FOMO thrives on urgency, so give yourself a cooling-off period before making big investment moves. Take 24 hours to research, reflect, and talk to someone you trust. Often, that extra time is enough to see things more clearly.
The Golden Triangle strategy is said to help identify stocks that are likely to regain acceleration. The name of this strategy refers to a geometrical figure that forms on chart when pullback and recovery fragments of the price action satisfy certain criteria.
Robinhood is a public financial technology company founded in 2013 and based in Menlo Park, California. It offers a mobile application enabling users to trade securities, including stocks, options, exchange-traded funds (ETFs), and cryptocurrencies, without paying commissions or fees.
(IBIS) (Integrated Stock Exchange Trading and Information System)(Germany). Computerized trading and reporting system used on the Frankfurt Stock Exchange and integrating the regional stock exchanges and the Deutsche Terminbörse, providing ...
replaced Alcoa, Bank of America, and Hewlett-Packard. On March 19, 2015, Apple Inc. replaced AT&T, which had been a component of the DJIA since November 1916. Apple became the fourth company traded on the NASDAQ to be part of the Dow.
The Bottom Line. The Nasdaq 100 and S&P 500 have both made great investments over the past 20 years. Over the long term, the former has been the best performer. However, because of its heavy concentration and tech focus, the Nasdaq 100 is also more volatile.
Blue-chip stocks are from companies that are large, well-established, and financially sound. These companies have strong brand names and reputations, and they generate dependable earnings. Blue-chip companies usually boast consistent dividends and are often considered less risky, given their financial stability.
