An Internet trading account is a special type of account designed specifically for individual investors who prefer to use the Internet to place their orders themselves rather than through the broker by telephone.
Online Trading allows investors to place orders on their own through the internet without having to call up a broker and place an order through them. Online trading gives investors greater control over their decisions. They can view real time market activity from anywhere they wish. A single keystroke or click-of-a-mouse executes a buy or sell order. Also, when the order has been completed you receive an instant confirmation of your trade via email.Our site also has research tools available, so customers can get real-time price quotes, news and market analysis, price charts, earnings estimates and historical prices.
Absolutely. All trade confirmations, margin calls, and other correspondence will be sent to your e-mail address and Mobile Number which you provide us.
Equity is the ownership of shares in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder’s equity or net worth or book value.
A symbol is a unique, market-approved code that identifies a particular security on an exchange. The symbol generally reflects the name of the security. For example, the symbol for the Pakistan State Oil (PSO). This is also known as the ‘ticker symbol’.
A limit order is when the user enters the order into the system with a specific price, while in a market order the system will execute the order irrespective of price. The system will search for the quantity of order to be completed at any available price. In a rapidly moving market, a market order may be executed at a price higher or lower than the quote displayed on the ticker at the time of order entry.
Market Lot is the normal unit of trading for a security, which is 500 shares of stock having price less than Rs.50/- and 100 shares of stock having price above Rs.50/-.
For stocks, any transaction less than the market lot is usually considered to be an odd lot. These odd lots cannot be traded on the regular market and hence the Pakistan Stock Exchange has initiated a separate ODD Lots Market.
A Margin account is an account where an investor only needs to keep a portion of the funds as a margin of the total amount with the stockbroker to process his/her trades at the Exchange. This means that the customer places a decided percentage (mutually agreed upon between the investor and the broker prior to operating the account) of the funds with the broker against the net total value of his/her trades carried out through that broker at the stock exchange. The margin amount in essence along with the shares purchased serve as collateral that the investor maintains with the broker to carry out his/her transactions. The Margin amount varies from broker to broker. At TSPL all customers are required to maintain 50% margin against his/her outstanding trades/exposure for the purpose of trading in his/her/their account.SECP regulations allows brokers to revise their margin requirements for their account holders if they inform their customers at least 3 days prior to the implementation of the revised margin requirements. The use of margin accounts provides investors to buy and hold more stock without paying for it in whole. This can provide investors the advantage to generate higher profits, but it also exposes them to the potential of higher loss.Cash accounts are different from margin accounts in the way that the amount deposited by the account holder is fully used and the funds deposited stipulate the amount of trading activity that can be conducted in that account.This means that the Account Holder can only buy/sell shares equal to the funds deposited by him/her with the broker.
Stop Loss trading is a form used to prevent unusual and large amounts of losses. It allows the client to place a rate below current market price if there is a drop expected. In this manner, a client can minimize losses by placing a rate as maximum loss.
I already have a CDC Investor’s A/C, what is the procedure to transfer shares from my CDC Investor’s A/C to my Sub A/c?
You will have to provide a CDC cheque (Transfer Order) in favour of “Time Securities (Private) Limited”. Our Participant ID is 05116.
• Copies of NIC must be submitted at the time of request. • All physical shares must be VERIFIED by the company’s registrar. • Turnaround Time for conversion of shares is at least 3-4 working weeks.
When you instruct your broker to buy shares for you at or below a certain price, or sell shares at or above a certain price, you’ve entered a limit order. Limit orders reduce the risk that an order will be filled at a price you don’t like, and best suit the investors’ interests in volatile markets. The down side, of course, is that by waiting for your price the stock you want gets away from you, or the stock you want to unload just keeps falling. The opposite of a limit order is a market order, in which the broker is instructed to execute the trade at any market price available.
Net income divided by common shares outstanding. A company that earns Rs.1 million for the year and has a million shares outstanding has an EPS of Rs.1. This EPS figure, which represents how much of earnings each share is entitled to, is important as the basis for various calculations an investor might make in assessing a stock’s prissiness. The most widely used indicator of whether a stock is over- or undervalued, for example, is the price/earnings (P/E) ratio, which relates share price to earnings per share.
Margin call alerts can be simply explained as a message sent to the client when his session holdings or exposure exceed his actual cash (Not Trading Limit) by a margin of 50%. This generally happens when a client using a margin account, utilizes almost all of his trading limit and the value of thescrips held are declining in price per share. As the price declines, it reflects negatively on the actual cash holding (Not Trading Limit). Scrips are organized in nature by classes under margin values (Class A to E that vary from 20% Margin to 100% No Margin). These can be found under ‘Portfolio’ in the client account. When the price of a share falls, according to the percentage amount of margin associated to it, deductions are made from the actual cash limit. When the actual cash is reduced by 50%, margin call alerts are sent to clients to either sell of their exposure or a portion of the exposure in order to square off their position.