The stock market has a number of terms associated with it. Investors and market analysts are well aware of smallcap, madcap, sensex, nifty, currency futures, free demat account, stock technical analysis, etc., and most terms may be new to a laymen.
Investors, payments and currency futures are interdependent terms. Currency futures, also termed foreign exchange futures, are standardized contracts wherein one currency is exchanged for another at a certain date in the future that is fixed on the purchase date. Contracts on currency futures can be signed; the contract stipulates the price at which a specified currency can be traded at a future time. For example, in case of the US dollar, the price of a currency future will be determined in terms of US dollars per unit of the other currency. Hedging and speculation are the key uses of currency futures. The risk factor is always there in foreign exchange and investors use currency futures contracts to get out of such risks.
Stock technical analysis is a humdrum affair in the stock world. When securities – financial instruments which may be equities, debt securities – are subject to analysis for estimating the future trend of prices through the study of market data of the past, especially focusing on price and volume, it is called stocks shares technical analysis. It is only price and volume transformations that stock technical analysis deals in; it ignores the concrete nature of the market, company, commodity, etc. including currency. It finds maximum usage amongst the stock market gentry encompassing active day traders, market makers, and pit traders.
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