Share Market

When you trade shares, there are several fees you need to consider. These fees include the Security Transaction Tax (STT), service tax, stamp duty, brokerage charge, and others. The most common of these are brokerage fees and STTs. In this article, let’s discover how to calculate brokerage in the share market.

NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) are two major depository institutions in India. Both facilitate the holding, transfer, and settlement of securities in electronic form. However, they differ in their ownership, market share, and services. NSDL is the first depository in India and is promoted by financial institutions like IDBI, HDFC, and NSE.

Scalp trading is a short-term, high-frequency trading strategy where traders aim to profit from small, rapid price movements in financial markets. Typically, scalp traders open and close multiple positions within a single trading session, sometimes holding positions for just seconds or minutes.

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.

The face value of a share is the nominal value assigned to it at the time of issuance. It indicates the initial cost of the share as stated in the company's documents. However, it doesn't reflect its market value, which can fluctuate. Face value is crucial for accounting and legal purposes.

The Super Trend Indicator is a trend-following technical analysis tool designed to help traders identify the direction of an asset's price movement. Developed by Olivier Seban, this indicator is handy for traders seeking to ride trends while avoiding the noise and fluctuations often accompanying market volatility.

The Sensex encompasses premier stocks that mirror a particular sector's entire or segment within the Indian stock market. Its function extends beyond representation, aiding investors in making well-informed and prudent investment choices with efficiency and timeliness.

Foreign Direct Investment or FDI is vital for the global economy, facilitating the movement of capital, technology, and expertise across international borders.

By comparing stocks on both platforms, you can select the one that aligns better with your preferences. Alternatively, you can engage in arbitrage trading by purchasing stocks from NSE and selling them on the BSE.

FDI occurs when a company or individual invests in assets such as property, equipment, buildings, technology, or shares of a foreign business entity, aiming to establish new business operations, expand existing ones, or gain a substantial stake in a foreign enterprise.