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Your trading account balance represents the total financial value held within your trading account. It includes the funds you can use for trading, the value of your securities, and any unsettled trades. You can typically check this balance by logging into your trading platform or contacting your broker.
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Reactivating your trading account is a straightforward process that involves reaching out to your brokerage. It typically requires updating necessary documentation, settling any outstanding fees, and signing relevant agreements. Once completed, your account will be reinstated, allowing you to resume trading in the financial markets.
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Arbitrage trading is a strategy in finance where traders take advantage of price discrepancies for the same asset in different markets. By simultaneously buying low and selling high, arbitrageurs aim to profit from these temporary price differences, often involving stocks, currencies, or commodities.
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Swaps and options are financial derivatives, but they serve different purposes. Swaps involve exchanging cash flows or liabilities, often used for managing interest rate or currency risks. Options grant the holder the right, but not the obligation, to buy or sell an asset at a predetermined price, typically used for hedging or speculative purposes.
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A secondary market is a financial marketplace where investors buy and sell existing financial assets like stocks, bonds, and derivatives. Unlike the primary market where new securities are issued, the secondary market facilitates trading among investors. Stock exchanges and over-the-counter (OTC) markets are common platforms for secondary market transactions.
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Options selling, a strategy in the financial markets, involves the sale of options contracts by an investor. It can refer to selling call options to generate income or selling put options to potentially acquire the underlying asset at a lower price. This strategy carries the obligation to fulfill the contract if the option buyer chooses to exercise it.
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