Trading commissions have a direct impact on mutual fund performance because they increase the overall cost of managing the fund. Every time a fund buys or sells securities, commissions are paid to brokers. These expenses reduce the net returns that investo...
Blog by PriyaSahu
Trading fatigue badly affects a trader’s decision-making by reducing focus, increasing emotional reactions, and causing poor judgment. When traders are tired, they struggle to think clearly, often make impulsive trades, and fail to follow their strategies....
Trading halts affect intraday traders because trading stops for a short time, and no one can buy or sell during that period. For traders who make quick trades in a single day, this can be risky. Prices can change suddenly when the market reopens, which may cause losses or profits. Halts can ...
Trading halts can temporarily stop stock market trading, affecting how mutual funds are valued and redeemed. During a halt, the prices of underlying securities in a mutual fund are not updated, making it hard to calculate the fund’s actual value. This can delay r...
A trading journal is one of the most powerful tools for traders to improve their performance. It helps record every trade — including entry, exit, reason for taking the trade, emotions, and results. By keeping track of all trading activities, traders can analyze ...
Trading latency refers to the delay between when a trading signal is generated and when the order is actually executed in the market. In algorithmic trading, even a few milliseconds of delay can make a big difference. High latency can cause missed o...
Trading on margin during high volatility can be risky because price swings become larger and faster. When markets move sharply, your profits or losses can increase quickly. If the market goes against your position, you may face a margin call — meani...
Trailer fees are small, ongoing payments made by mutual fund companies to distributors or advisors for managing client investments. While these fees might seem minor at first, they can have a noticeable impact on long-term investment returns. Over t...
In algorithmic trading, speed is everything. Ultra-low-latency execution means trades are completed in microseconds — much faster than human reaction time. This lightning-fast execution helps traders get the best prices before the market changes, giving th...
Job reports tell us if people are getting work or losing it. These reports shape how investors feel about the economy. Strong job numbers usually make investors more confident, while weak job numbers make them cautious. Watching these reports helps ...
Unemployment data has a big impact on stock markets because it shows how healthy or weak an economy is. When unemployment numbers rise, it means fewer people have jobs, spending decreases, and businesses may earn less — this often causes stock prices to fall. But...
Unexpected central bank actions can cause big movements in the forex market. When a central bank suddenly changes interest rates, buys or sells large amounts of currency, or announces new monetary policies, it surprises traders and investors. These surp...
UPI-based investing has made mutual fund investments faster, simpler, and more convenient for everyone. It allows investors to make payments instantly using their UPI ID without the need for net banking, debit cards, or paperwork. This system has en...
Variance swaps allow traders to bet directly on how much the market will move, without worrying about the direction. They play a big role in options trading strategies because they help traders manage or profit from changes in volatility. By using v...
Volatility clustering means that high volatility periods in the market are often followed by more high volatility, and calm periods are followed by more calmness. This pattern affects how traders design and manage options strategies because it influ...
Volatility skew shows how implied volatility changes across different strike prices of options. It helps traders understand how the market views risk and demand for various options. The skew can affect option premiums, making some options more expen...
Volume profile analysis helps traders understand how much trading activity happened at different price levels. It shows where most buyers and sellers are active and where prices are likely to find support or resistance. By studying volume distribution...
Warehouse storage costs are the extra money needed to keep physical goods safe until they are sold or delivered. These costs include rent for the storage space, insurance, security, and handling charges. When storage costs go up, t...
Wash sales can significantly affect a day trader’s taxable income. When a wash sale occurs, the trader’s realized loss on the sale is disallowed for tax purposes and instead added to the cost basis of the repurchased stock. This means the trader cannot use t...
Wash trading is a market manipulation tactic where a trader buys and sells the same stock simultaneously to create false trading activity. This practice gives the illusion of high demand or heavy trading volume, misleading other investors into thinking the...
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