PehlaTrade

GST- Goods & Service Tax , it is a value added tax which is imposed on sale, usage and manufacturing of different goods and services and this charge may vary from country to country. Consumers of goods and services have to pay this charge and different business entities collect this charge to further forward it to the government.This single taxation system in the entire country for all goods and services is formed with an aim of improving the economic growth and making taxation system more transparent. Advantages of GST : 1)It will decrease the number of indirect taxes and with its implementation business entities can mention tax applied in slaes invoice itself. Consumers will be having no more confusion on the amount of tax which they are paying for using a particular product or service. 2)In the present taxation system there are separate taxes which are to paid making the entire process of taxation difficult and complex, as it requires the division of transaction va...

Earlier when only traditional brokers were there traders need to make a call to their brokers for placing their buy/sell orders over the exchange.The entire process was time-consuming and also the huge cost was involved. At that time brokerage charges were very high as compared to the present.People were not very familiar with technologies as they are now.With the introduction of different technologies, a new concept of the discount broker was also introduced.Although both traditional broker and online discount brokers offer brokerage services there is a big difference in the amount charged by them as commission. Call charges W ith the presence of advanced technology nowadays trading can be done from anywhere even without having computer or access to the internet.All you need to do is make a call to the executive of your broker and place your different buy/sell orders.A call charge has to be paid every time you place an order over the phone.Charges on orders pla...

Stocks which are traded at very low price and have low market capitalization as well are called penny stocks.This concept of penny stocks is originated from USA and word is derived from the unit of currency known as “penny”. Such stocks exist in Indian stock market also and are usually priced below Rs.10.However, all stocks which are priced low are not penny stocks.There are some companies trading at a low price because of small face values but are large companies with large market capitalization.Penny stocks and penny business are often used interchangeably in the stock market but they are not at all same.To trade in stock market having a Demat account and the trading account is mandatory. Some characteristics of penny stocks Poor business fundamentals and disclosure.Financial information is not easily available. Very low market capitalization (>50-100 crores). They usually belong to small companies which are traded infrequently. No institutional shareholding exi...

Pair trading is a market neutral trading strategy which enables traders to make a profit under different market conditions.Without learning about the recent market trend a trader matches a long position with a short position in a pair of highly correlated shares, commodities, currencies or etfs. Usually, the pairing is done in shares of companies which belongs to the same industry. Demat account and trading account are required to trade using this strategy like in others. Advantages of pair trading are discussed below: No risk from market direction Direction risk means risk associated with movements in price because of change in market direction. For an example, a short position is exposed to the risk that stock prices may rise.In pair trading, no such risk exists. Because here profit depends on the difference in price changes of two stocks which are in the pair not in the direction in which they move. Limited risk and profit in different market conditions The co...