Blog categorized as Stock Market

Stock price momentum plays an important role in your investment strategy by helping you identify stocks that are trending upward. If a stock has been going up steadily, it may continue to do well in the short term. By following momentum, you can enter strong stocks early and ride the trend...

Stockbrokers play a major role in the stock market by helping investors buy and sell shares. They act as the link between you and the stock exchange. Whether you're a beginner or experienced investor, a stockbroker provides the platform and tools needed to trade, along with expert advice, ...

Stocks play a key role in a 401(k) retirement plan by helping your money grow faster over time. Since 401(k) plans are long-term investments, stocks provide higher returns compared to safer options like bonds. By investing in stocks through mutual funds or ETFs in a 401(k), you can build a...

Stocks play an important role in a retirement savings plan because they offer high growth potential over the long term. By investing in stocks, you can grow your wealth faster than traditional savings methods. This helps build a strong financial base for your retirement, especially if you ...

Stop-loss clustering plays a major role in increasing market volatility. When many traders place their stop-loss orders at similar price levels, and the price reaches that point, all those orders get triggered at once. This leads to sudden price drops or spikes, creating sharp market movem...

Stop-loss orders in the stock market help limit your risk by automatically selling your shares when the price falls to a certain level. This prevents you from losing more money than you’re willing to risk. It’s a simple and effective way to protect your investment and control losses withou...

Stop-loss strategies in mutual funds help protect your investment from large losses by setting a limit at which your units are sold automatically. This means if the fund’s value drops below a certain point, the investment is exited to avoid further loss. It’s a way to manage risk and prote...

Storage costs in commodity futures represent the expenses involved in storing physical commodities like oil, grains, or metals. These costs affect the pricing of futures contracts. When storage costs rise, the futures price generally increases compared to the spot price. Understanding stor...

Stress testing in mutual fund risk management helps to understand how a fund might perform under extreme market conditions. It allows fund managers to check if the fund can handle sudden market shocks like crashes, interest rate hikes, or economic downturns. This helps in reducing risk and...

Structured investment strategies in mutual funds help manage risk and aim for steady returns. These strategies use a mix of assets like equity, debt, and derivatives in a planned way. They are designed to protect capital while also targeting growth. This is useful for investors who want a ...

Style drift in mutual fund evaluation means when a fund manager changes the fund’s original investment style or strategy. For example, if a large-cap fund starts investing in mid or small-cap stocks, that is style drift. This can create confusion for investors and increase risk because the...

Supply and demand directly control the prices in commodity trading. When supply is low and demand is high, prices rise. But when supply increases and demand is low, prices fall. Traders and investors study supply-demand data to decide when to buy or sell. This basic principle helps them ea...

Supply and demand play a major role in determining the prices of futures contracts. When demand for a commodity or asset increases and supply remains low or limited, the futures price tends to rise. On the other hand, if supply goes up and demand stays low, prices tend to fall. Futures mar...

Supply chain analysis helps fundamental investors understand how well a company manages the production and delivery of its products. A strong supply chain means better efficiency, cost control, and timely delivery—all signs of a healthy and competitive business. If a company faces frequent...

Supply chain disruptions play a big role in commodity trading because they directly affect the availability and price of goods. When the supply chain is delayed or broken, it becomes harder for commodities like oil, metals, or food grains to reach markets. This causes prices to rise or fal...

Support and resistance levels are important tools in stock trading that help traders understand where the price of a stock might stop moving and possibly reverse. Support is the price level where a stock tends to stop falling, and resistance is where it tends to stop rising. These levels g...

Sustainability-linked KPIs (Key Performance Indicators) in mutual fund investments help measure how well a company or fund is performing in terms of sustainability goals like reducing pollution, using clean energy, or improving social impact. These KPIs help investors know if a company is ...

Swap rates in forex trading are the interest rate differences between the two currencies in a currency pair. When you keep a forex trade open overnight, you either earn or pay a swap based on this rate. Swap rates play an important role in deciding the cost or profit of holding a trade ove...

Swaptions are used in institutional portfolio management to manage interest rate risks. They give the option, but not the obligation, to enter into an interest rate swap. This helps institutions like banks, mutual funds, and pension funds to protect their portfolios from sudden rate change...