Backtesting is a crucial step in evaluating the viability of a trading strategy before applying it to live markets. It helps traders assess the potential profitability, risks, and performance of a strategy using historical data. In this blog, we will explain how to backtest a trading strategy effec...
Blog by PriyaSahu
Arbitrage is a trading strategy used to take advantage of price discrepancies in the market. Essentially, arbitrage involves buying an asset at a lower price in one market and simultaneously selling it at a higher price in another market. In the stock market, this often occurs when there is a diffe...
High-frequency trading (HFT) refers to the use of advanced algorithms and powerful computers to execute a large number of orders at extremely high speeds. HFT strategies are commonly used in financial markets, particularly in stocks, options, and futures trading. The goal of high-frequency trading ...
Quantitative trading strategies, also known as quant strategies, are based on mathematical models and algorithms designed to identify trading opportunities. These strategies leverage vast amounts of historical data, statistical methods, and computational techniques to make trading decisions automat...
Algorithmic trading is the use of computer algorithms to automatically execute trading strategies at high speeds, with minimal human intervention. By leveraging algorithms, traders and institutions can make decisions, execute orders, and manage portfolios much faster and more efficiently than tradi...
When a company goes public through an Initial Public Offering (IPO), one of the most significant moments for investors is the company's listing day on the stock exchange. The performance of an IPO on its listing day can play a critical role in shaping investor sentiment, market perception, and the ...
India has witnessed several high-performing IPOs over the years, offering substantial returns to investors. The best-performing IPOs are those that have shown remarkable growth since their listing, either due to strong market demand, good company fundamentals, or investor confidence in the sector. ...
A Draft Red Herring Prospectus (DRHP) is a preliminary document that a company files with the Securities and Exchange Board of India (SEBI) when it intends to launch an Initial Public Offering (IPO). It provides potential investors with detailed information about the company’s business operations, ...
When it comes to IPOs, investors often focus on official channels like stock exchanges for applying and trading shares. However, there is another informal marketplace where IPO shares are bought and sold even before the official listing — the **gray market**. This market plays a crucial role in ...
An Initial Public Offering (IPO) is considered oversubscribed when the demand for its shares exceeds the number of shares available for sale. Oversubscription is a crucial indicator for investors, as it shows the level of interest in the company and its shares. But how do you know if an IPO is o...
When a company decides to go public and raise capital through an Initial Public Offering (IPO), it can choose between two methods for pricing its shares: Book Building and Fixed Price. These two methods differ in terms of how the price is determined and how investors participate. In this blog, w...
An Initial Public Offering (IPO) is a critical event for a company looking to raise capital from the public. One of the most important entities involved in the IPO process is the "Lead Manager." In this blog, we’ll dive into the role and responsibilities of a Lead Manager in an IPO and...
Applying for an Initial Public Offering (IPO) in India is a straightforward process but requires the necessary documents and a Demat account. Here's a step-by-step guide to help you apply for an IPO successfully.
1. Prerequisites to Apply for an IPO
Before you can ap...
Corporate tax cuts are a significant policy tool used by governments to boost economic growth and improve business conditions. When the government decides to reduce corporate tax rates, it can have a profound impact on the stock market and individual companies. In this blog, we will explore the imp...
Mutual funds are a popular investment option in India, allowing individuals to pool their money together and invest in a diversified portfolio managed by professionals. However, like all financial instruments, mutual funds in India are governed by a set of laws and regulations designed to protect i...
The Securities and Exchange Board of India (SEBI) plays a crucial role in the Indian stock market by regulating and overseeing the securities market to ensure that investors are protected. As the market's watchdog, SEBI's responsibilities extend beyond regulation and compliance to include the promo...
Goods and Services Tax (GST) has become a significant part of India's tax structure, aiming to streamline tax collection and reduce complexities. While GST is applied across various industries, its impact on the stock market and its services has also been noteworthy. In this blog, we will explore h...
A broker is a key intermediary in the securities markets, facilitating buying and selling of stocks and other financial instruments. However, there are times when you may face issues with your broker—be it regarding mismanagement of funds, unauthorized trades, or other fraudulent activities. If you...
Insider trading refers to the illegal practice of trading securities based on material non-public information. The penalties for insider trading are severe because it undermines the integrity and fairness of financial markets. In this blog, we will outline the penalties for insider trading, which v...
As a Non-Resident Indian (NRI), you may face the challenge of double taxation, where the same income is taxed both in India and in your country of residence. Fortunately, there are measures and provisions to avoid this. In this blog, we will guide you through various methods to avoid double taxatio...
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