Commody Market

Margin Trading V/s Delivery Based Trading
INTRODUCTION
STOCK MARKET
Meaning The market for long-term securities like bonds, equity stocks and preferred stocks is divided into primary market and secondary market. The primary market deals with the new issue of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. History of Stock Exchanges in India The origin of the stock exchanges in India can be traced back to the later of 19th century. After the American civil war (1860-61) due to the share mania of the public, the number of brokers dealing in shares increased. The brokers organized an informal association in Mumbai named the native stock and share brokers associations in 1875. Increased activity in trade and commerce during the First World War and Second World War resulted in an increase in the stock trading. Most of the stock exchanges in the early stages had a speculative nature of working without technical strength. Securities and contract regulation act, 1956 gave power to the central government to regulate the stock exchanges. At present We have 23 stock exchanges and 21 of them had hardware and software complaint to solve Y2K problem.
Till recent past, floor trading took place in all the stock exchanges. The floor trading system, the trade takes place through open outcry system during the official trading hours. This system needs a face to face among the traders and restricts the trading volume. The setting of the NSE and OTCEI with the screen based trading facility resulted in more and more stock exchanges turning towards the
Lorven college of science and management
Computer based trading. Bombay stock exchange introduced the screen based trading system in 1995, which is known as BOLT (Bombay online trading system). Secondary market is the place where millions of people come together and buying. The ownership of the company is on the expectation of making more money from its sales. Returns from investments in shares come in two forms- capital appreciation and dividends. Capital appreciation takes place when there is a increase in price of shares and dividend get from the companies part of profit. In secondary market negotiation & bargaining of shares of the company between the sellers and buyers is happen. As compare to other industry exchange process secondary Market rules are totally different. Because of the one reason, in the secondary market all transactions are happened on the basic of making more money but in the case of other
industries exchange is happen mainly due to satisfaction of wants and needs . ORIGIN OF SHARES The first kind of share transaction is happened in Holland .More than ten thousand ships go to export that time. it s a lucrative business for the ship owners, but some risks including in that. Return of ship is not predictable, because of the falling tide& flood tide. The ship cant reach the correct time, the ship containing Perishable products is become useless, its also gave the burden to ship owners. For solving this type of risk, the 18 ship owners find a solution, nothing but issuing different part of capital to public. This method is speedily accepted by the public. Also participation of brokers active there. If the navigator of the ship is good and efficient the share value of the ship will increase if the news will spread like the ship will comes like gold or platinum it has more demand. Here also happened in the born of rumors.
Functions of Stock Exchange Maintenance of active trading Fixation of prices Ensure safe and fair dealing Aids in financing the industry Dissemination of information Performance inducers Self-regulative organization
REGULATORY FRAMEWORK
A comprehensive legal framework was provided by the securities contract regulation act, 1956 and the securities exchange board of India act, 1992. The three tire regulatory structure comprising The ministry of finance The securities and exchange board of India The governing board Capital Market is a wide term used to comprise all operations in the New Issues and Stock Market. New Issues made by companies constitute the Primary Market, while trading in the existing securities relates to the Secondary Market. While we can only buy in the Primary Market, we can buy and sell securities in the Secondary Market. Capital Market encompasses all operations of F.I.I., Banks etc., at the long end of spectrum of maturities. It is concerned with those private savings that are turned into investments through new capital issues and also new public loans floated by government and semi-government bodies. Capital Market is a market for borrowing and lending of funds of more than one year. This market supplies funds for financing the fixed capital requirements of trade and commerce as well as the long-term requirements of
The government. Developing banks and Insurance companies play a dominant role in the capital market. Transactions in the capital market have to be conducted only through authorized dealers.
Meaning of Day Trading V/s Delivery based Trading

Day traders quickly buy and sell stocks continually throughout the day in the hopes that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, letting them lock in quick profits.
Day trading can be quite lucrative. However, by nature, it is one of the more risky and challenging forms of trading and investing. If you are determined and are willing to potentially spend many months or even years learning the ropes, don't let anything discourage you from becoming a successful day trader! There are many reputable companies on the Internet who offer day trading opportunities to the investor. Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. Traders that participate in day trading are called day traders. Delivery based trading is a trading where one can buy the share and hold the share for n number of days. Where one can place the order and the share is delivered to his De-mat a/c and he sell it at any time or any of the working days. He can weight for the right time to sell it off. Here lot of analysis work to be done before buying a particular script. If he holds the share for long time he can enjoy the benefit of dividends, bonus shares etc.
CHAPTER-2
Research Methodology
This project report contains two parts
Part A
STUDY WORK
Part B
FIELD WORK
DATA COLLECTION (Primary data; Company guide, offline traders) (Secondary data; Internet sources, magazines)
DIRECT MARKETING
2.1 Statement of the problem

A Comparative study on day trading v/s delivery based trading includes a entire process in the D-Mat A/C opening and trading process. And it includes risk management practices adopted by the company, and how customers will place the order through off line and on line mode.
2.2 Objectives of the study

Specific objectives of the study are as follows. To know the differences between intraday and delivery based trading.
To increase the sales in terms of D-mat account. To know risk and return involved in Margin Trading and Delivery Trading.
To know about the service provider in Standard Charted-STCI Capital Market Ltd to the investors.
To give suggestion regarding Margin Trading and Delivery Trading to the customer and to the company.
2.3 Scope of the study

This study involves the online trading & Delivery based trading. To know about these two above concepts is very important because now a days share market that is BSE & NSE is performing very well based on Indian industries performance. And more important is that how the
Standard Charted-STCI Capital Market Ltd is providing or offering a services to its customers regarding these two above operations under the the guidance Of SEBI and this purpose I have chosen a questionnaire method to know the customers opinion.
The following are the details of Sampling Sampling size

The sample composition was of 50 individuals from various levels of working and also income.
Sampling
The sample consists of the following categories of investors. Employees in Government and Private Organizations Business people Professionals Retired people
2.4 Sources of data collection

The data collection is one of the important aspect in the research design purely because, it is the way that how we can get answer to the research question. Data relating to working capital is required for the study i.e. about the sources of funds and application of funds and balance sheet for calculating various ratios. The data is collected in two ways: Primary Data Secondary Data
2.4.1 Primary Data:

Primary data was collected with the use of questionnaire and personal interaction with the company employees and general public.
2.4.2 Secondary Data:

Secondary data was collected by: Referring several books on insurance issues. Referring different books and previous project reports in a college library. Referring from fact sheets, brochures, journals, reference books, etc. Referring some of the articles, reports and magazines on insurance.
2.5 LIMITATIONS OF THE STUDY:

Survey will be conducted only for individuals This survey is useful only to certain period of time The survey will be conducted only in Bangalore city, The survey will be conducted only to working respondents High risk profit Most of the people prefer delivery based trading. People are not mach aware of this trading.
CHAPTER-3 COMPANY PROFILE

UTI SECURITIES LTD., (UTISEL) was incorporated on June 28, 1994 by Unit Trust of India as its 100% subsidiary and on the repealing of the UTI Act, the capital was now held by the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI), on April 17, 2006 the entire share capital of the company was transferred from SUUTI to Securities Trading Corporation Of India Ltd. [STCI] and its nominees. UTISEL has been working as an independent professional entity for providing financial intermediary and advisory services to corporate institutional and retail clientele. The Company has built up a reputation for transparent and fair execution of transactions, which have been well received and appreciated by its clientele. The staff at UTI Securities strives to maintain the quality of services offered to its clients at the highest degree. The Company has grown from an institutional brokerage house to a full-fledged financial intermediary having nationwide presence in major cities with branches and franchisees to service a wide range of clients. We are committed to gradually enhancing our network in the near future. The Company has started Commodity Trading through its subsidiary, STCI COMMODITIES LIMITED, which provides facility of commodity trading on NCDEX and MCX.
MISSION & VISION

To emerge as one of the leading providers of stock brokerage, investment banking and related services, at par with the best in the world".
PRODUCTS AND SERVICES ONLINE

Equity: At usec trade, you can place online trades for virtually any stock listed on NSE & BSE. Usec trade offers plenty of powerful ways to place stock orders ... along with the trading tools and services that help you move quickly and conveniently. Ways to trade stock. Delivery based Trading: Place delivery based orders for all stocks listed on NSE & BSE Intra-day Trading: Execute Margin Orders up to 3 to 4 times your available funds. The same is available for select group of stocks listed on NSE & BSE.
Derivative: With a Derivative-approved usec trade account, you can pursue a wide range of Futures & Options trading strategies with speed and ease. We deliver the support, information and structure that quickly let you spot potential opportunities and act on them fast.
Mutual Fund
At usec trade, we offer access to more than 1000 mutual fund schemes from leading fund families. These funds provide broad diversification and cover a range of investment objectives, philosophies, asset classes and risk exposures. Trades may be placed via the Internet, Interactive Voice Response (IVR) phone system or with a broker.
IPO: IPO or Initial Public Offer presents excellent opportunities for gaining high returns on your investments in a relatively short period of time. We have made investing in IPOs hassle free. All that is required is Buying POWER and rest is at the click of a button. No paperwork no queues. Get information on IPO news, Forthcoming IPOs and a lot more on Usectrade.com
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Commodities: Metals, energies, grains and livestock whatever you wish to trade, you'll find it on our commodity trading system. Plus, you'll get a comprehensive suite of educational, analytical, and execution tools that makes trading commodities easy.
Insurance: usec trade in association with Birla Sun life brings you a secure insurance option without the hassles and worries of a conservative insurance plan. With least paperwork, you get the dual benefit of a risk cover and savings. What's more, we shall send you regular reminders about your premium payments due. GOI Bonds: Fixed income securities can help reduce your risk within an investment portfolio while providing a steady stream of income over time. Currently you can choose to invest online in GOI Bonds. If you are looking to diversify your portfolio, possibly improve your tax efficiency and/or reducing your risk exposure, you may want to consider making fixed income securities part of your Research Charting Tools - Get a combined view of stocks, rapid price changes and volume increases with this pre-trade analytic tool. Enables you to do technical market analysis of stocks on price, volume, market cap and P/E for NSE/BSE Benchmark against Domestic as well as International Indices .Sector Watch - You can access sector-wise information to track sectors and individual scripts within the sector, which makes analysis easy for you. personal investment strategy.
Corporate Info hub-We provide you with exhaustive company information, detailed financials and ratios. And we also allow you to evaluate financials across peer companies. Our extensive database covers more than 4000companies Newsroom - View live market news from the most reliable
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Sources on equity, debt, politics and general events. You even have access to live news analysis, market commentary and happening stocks.
Customer Service & Other Value Added Services Online Query Resolution - With our "Quick Mail" tool you can resolve all your problems online. Online Ledger - View your Digital Contract Note, summary of your transactions using Online "Bills & Accounts" My Inbox - Maintain records of all important notifications related to your account SMS Alerts - Set Price based Alerts for Stocks of your choice Dedicated Customer Care Centre & State-of-the-art Phone-2-Trade Desk Interactive Demo - A step-by-step guide to enable you to navigate through the process of Investing Online on our website Usectrade.com Subscription to Mailers - Subscribe to our In house Research Reports covering our entire Product Bouquet Customer Education Sessions - Register Online for Customer Sessions & Workshops on various topics ranging from Derivatives to Commodities & Market Analysis.
OFFLINE
Investment Banking is one of the prime focus areas of the company and we provide value added, customized solutions to our clients. Leveraging on the knowledge, expertise and experience of our professionals, we offer services that range from managing public issues, debt and equity placements, corporate advisory services and financial consultancy to facilitating mergers and acquisitions.
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The Investment Banking Team's business philosophy emphasizes:

Long-term relationship with clients. A strong research-based advice. Innovative solutions and speedy execution. Ethical and transparent conduct of business. It has always been the endeavor of UTI Securities to bring all the market constituents together in a mutually beneficial relationship.
Equity capital market: The Issue Management group focuses on public issues, open offers and buy back issues. Our proximity to large institutions gives us an added advantage in placing large equity issues. This division is supported by a nationwide network comprising of 12 branches, 15 franchisees and subbrokers across the country for retail distribution. Within a short span, UTISEL has already been recognized as one of the leading merchant bankers in India. UTI Securities has consistently provided professional guidance and expert services. Over the years, it has developed strong relationships with institutional investors and other market intermediaries, enabling it to structure and successfully place a Wide array of Capital Market products that meet the requirements of the issuer, investor and the market.
The Equity Capital Markets group offers the following services:

Initial Public Offerings Rights Issues Buy-Back Underwriting Open Offers Delisting of Securities Private Equity
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The Equity Capital Markets group seamlessly draws on the expertise provided by the Equity Research and Equity Sales teams on all the public offerings. We have been associated with a number of issues in different capacities as Lead Managers, Co Managers, Syndicate/Sub-syndicate Members, etc. in the past. We successfully lead managed recently the public issue of Four Soft Ltd., a software products company, with an issue size aggregating Rs. 200 Million. We were also involved as a syndicate member in the issue of Indraprastha Gas Ltd. where we procured over 12,000 applications. We are currently lead managing the issues of SMS Pharmaceuticals, a bulk drugs manufacturer; Glen mark Laboratories Ltd. which is in formulations segment; Vivimed Labs Ltd., manufacturer of pharmaceutical ingredients catering to the Personal care industry and Crew BOS Products Ltd., a
fashion accessories manufacturer. The size of the said issues ranges from Rs. 150 million to Rs. 500 million. We are also Lead Managing Rights Issue of Varun Shipping Company Ltd of Rs.130 to 150Corers. We also pursue Buyback/ Delisting offers amongst others We are aiming at making further inroads by securing mandates of premier companies in the Pharmaceutical, Textiles, and Information Technology, Hospitality, Banking and Housing Finance industries amongst others. Private Equity The Private Equity Group arranges equity placement through the offmarket route using its privileged relationships with various Venture Capital and Strategic & Portfolio Equity investor who operate from within the country as well as from abroad. The Private Equity group assists companies seeking capital infusions in the form of seed capital, venture capital, angel investment, strategic investment, and mezzanine financing from the private equity marketplace.
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The private equity group identifies start up, later stage projects for investing in well-managed companies, which are placed to grow rapidly and to take advantage of the favorable economic conditions existing within the space with a clearly defined business. Model. Private Equity Group has followed the philosophy of being a multi-sector player, as it believes that in the Indian context it ensures an optimum balance of risk and return to its investors. Private Equity Group has demonstrated its industry expertise in different sectors by backing diverse sectors like Pharma, Power,
Entertainment, Information Technology etc.
PMS
A group of experts design and manage your equity portfolio, suiting your risk-return appetite Benefit of Diversification and an element of customization No Settlement hassles Separately held securities Greater Flexibility Efficient switch between cash and equity positions Portfolio designing is done as per market conditions and market considerations Customized Performance Reporting 100% Transparency, managed under SEBI license and regulations Competitive Fee Structure.
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D-mat services: UTI Securities was one of the first broker-cum-Depository Participants in the country Starting depository operations in 1997. UTI Securities is a participant in National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), through its Depository operations. The company believes in efficient and cost-effective service support to its brokerage business. In keeping with this philosophy, services offered to broking clients carry no extra transaction charges. You will find our service charges very competitive - offering the best value for your money. Back office software used is sate of the art in the industry.
Our valued clients include Banks, Overseas Corporate Bodies, High Net worth Individuals and Retail clients. Services Offered
Account Opening
Approach a depository participant (DP). Fill up the Account Opening Booklet. If your shares are held in joint names, be sure to open your account in the same order of names. If A, B and C jointly hold 100 shares in the company and have three share certificates all named as ABC, one DP (depository participant) account will suffice. For different combinations of names, open separate accounts for each combination. If the three certificates are held as ABC, BAC and CBA, three accounts are required. There is no limit to the number of accounts you can open. There is no limit to the number of DP (depository participant) you want to have accounts with.
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You can even open a multiple-sign Depository Participant - Client Agreement, which each investor must sign at the time of account opening.
You will receive an account number and a DP (depository participant) ID number with each account. Quote both these in all future correspondence with your DP.
After opening the account, you can hold shares of any number of companies in your account, provided all such companies have entered the depository system.
Dematerialization At your request we arrange to convert your physical holdings into electronic form. To do this you would require opening an account with NSDL through us called "Beneficiary Account" in the name and style in which the shares are held and lodge the share certificates with us accompanied by a dematerialization request form, separate for each scrip. You are required to only make sure that NSDL has admitted that scrip for Dematerialization. An up to date list will be provided to you who will be constantly updated. You have the option to convert your electronic shares back to physical shares. Transfer of shares and settlements. Transfer and settlements have never been easy as it is under the Depository system. Al l that is required is an instruction slip from you. If you are selling securities then it has to be a delivery instruction slip. If you are purchasing securities it has to be a receipt instruction slip or standing instructions for credit.
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Pledge-Hypothecation. We provide facilities to pledge / hypothecate dematerialized stocks held in client accounts for the purpose of raising a loan. This process is also much faster than in the case of physical shares. Freezing/ Locking Of Accounts. You can also keep your accounts frozen /locked for the span of time desired by you. No debits from your account will be made during this period. Nomination. The nomination form duly filled-in should be submitted to the DP either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted. If nomination was not made at the time of account opening, it can be made subsequently by submitting the nomination form. Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, and kartha of Hindu Undivided Family or a power of attorney holder. Transmission. Transmission is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder. Process of transmission in case of dematerialized holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP whereas in case of physical securities the surviving joint
holder(s)/nominee/ legal heirs has to correspond independently with each company in which shares are held. Holdings & Transaction Statements on Internet. We are having the facility to view the statement of transaction & statement of holding on the net, which is updated on real time basis.
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Wholesale debt market: UTI Securities had started its broking services in Whole Sale Debt Market in early 1995 after obtaining NSE-WDM segment membership. The corporate office of the company has set up a well organized dealing desk for broking in Government Securities and PSU Bonds. The company enjoys the privilege of being on the approved panel of most of the Nationalized Banks, Private Sector Banks, Foreign Banks, Mutual Funds, Primary Dealers, and Financial Institutions. We have more than 34 hot lines installed with various Banks and Primary dealers which facilitates the on line latest two way quotes for dealings. As on 31-03-2004 the company has been able to achieve total turnover of Rs.20, 675.95 cr., despite adverse Market condition.
The company also has made its foray in retail broking and advisory services through Retail Desk and is catering broking and advisory services to large number of Urban Cooperative Banks. In a short span the company has captured the voluminous retail business in Government Securities.
The quotes for wide range of NON SLR securities and PSU Bonds are regularly floated to various Corporate, Provident Funds, Trusts, etc., by NON SLR Desk. Through the net work of branches at key centers, the company has regular dealings with large number of clients all over the country. With excellent and professionally managed team work, the company aims at becoming one of the top ten leading broking houses. Institutional broking: UTI Securities has made significant investments in technology to provide that extra competitive edge to its clients. We provide on-line information on almost all stocks traded in India. A member of 4 major stock exchanges, WDM and NSDL, we aim to execute all orders swiftly at the best available price. We maintain total confidentiality and fairness in all our deals. The company has a strong sales team, helped by a dedicated team of dealers, with a primary focus on institutional brokerage business. The team
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Services all leading domestic mutual funds/institutions as also to a large number of FII clients. UTI Securities, through its institutional brokerage services believes in providing an entire gamut of value-added investor services to its clients with a view to maximizing client satisfaction by speedy and effective fulfillment of all their investment needs. Investment ideas from the UTI Securities Research Team help backup the clients' fund management activities even while a reliable and consistent follow-up dealing and execution support is provided. The company enjoys significant market share in the institutional brokerage segment
UTI Securities is empanelled with all leading Indian Mutual Funds, Financial Institutions and Foreign Institutional Investors in India. The company is currently member of Bombay Stock Exchange and National Stock Exchange, apart from being a member of the Over the Counter Exchange of India and Ahmadabad Stock Exchange. INDIAN SECONDARY MARKET INDUSTRY
Secondary market is the place where the transactions of listed shares are happen. More than millions of people in India closely related to share market. There are 22 stock exchanges in India NATIONAL STOCK EXCHANGE OF INDIA (NSE) BOMBAY STOCK EXCHANGE (BSE) 19 REGIONAL STOCK EXCHANGES OVER THE TRADE EXCHANGE COUNTER (OTECI)
But most of the trade happening in now days is in NIFTY (NSE INDEX) SENSEX (BSE INDEX)
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THE INVESTORES CAN INVEST FOLLOWING SEGMENTS NSE CASH MARKET BSE CASH MARKET NSE F&O ( FUTURE& OPTION) COMMODITIES BOND& OTHER SECURITIES
MUTUAL FUNDS
ROLE OF A BROKING FIRM Broking firm means, the organizations which gives better service to investors. Following are the some basic services a Firms offers Helping the investor to buying & selling shares Providing valuable advice Making suitable portfolio Act as a Depositary participant
Providing online trading facility
THE CONCEPT OF BROKER:

Broker is a authorized person; help the investor to selling & buying shares. As per SEBI regulations, only registered members can operate in the stock market. One can trade by executing a deal only through a registered broker of a recognized stock exchange or through a SEBI- registered sub broker.
OPENING OF DEMAT A/C

De-mat refers to a dematerialized account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a de-mat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DP (depository participant)
(remember, they are like bank branches), to open your de-mat account.
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DEPOSITORY AND A DEPOSITORY PARTICIPANT

A depository is a place where the stocks of investors are held in electronic form. The depository has agents who are called depository participants (DP). Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DP (depository participant) is the branches that cater to individuals. There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DP (depository participant).
DOCUMENT NEEDED TO OPEN AN DEMAT A/C

Here is a broad list (you won't need all of them though): PAN card Voter's ID Passport Ration card Driver's license Photo credit card Employee ID card Bank attestation IT returns Electricity/ Landline phone bill
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Marginal Trading
Day traders quickly buy and sell stocks continually throughout the day in the hopes that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, letting them lock in quick profits. Day trading can be quite lucrative. However, by nature, it is one of the more risky and challenging forms of trading and investing. If you are determined and are willing to potentially spend many months or even years learning the ropes, don't let anything discourage you from becoming a successful day trader! There are many reputable companies on the Internet who offer day trading opportunities to the investor. Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. Traders that participate in day trading are called day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Day trading used to be the preserve of financial firms and professional investors and speculators. Many margin traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet. Because of the high profits (and losses) that day trading makes possible, these traders are sometimes portrayed as "bandits" or "gamblers" by other investors. Some individuals, however, make a consistent living day trading.
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Nevertheless day trading can become very risky, especially if one has poor discipline, risk or money management. The common use of buying on margin (using borrowed funds) amplifies gains and losses, such that substantial losses or gains can occur in a very short period of time. In addition, brokers usually allow bigger margins for day traders. Where overnight margins required to hold a stock position are normally 50% of the stock's value, many brokers allow pattern day trader accounts to use levels as low as 25% for intraday purchases (It depends on the brokers strategy and the risk management system they are following). This means a day trader with the legal minimum Rs.25,000 in his account can buy Rs.1,00,000 worth of stock during the day, as long as half of those positions are exited before the market close. Because of the high risk of margin use, and of other day trading practices, a day trader will often have to exit a losing position very quickly, in order to Prevent a greater, unacceptable loss, or even a disastrous loss, much larger than his original investment, or even larger than his total assets. Even when a position has made a profit, the trader has to offset the transaction costs and the interest on the margin. It is commonly stated that 80-90% of day traders lose money. An analysis of stock market suggests that "less than 20% of day traders earn profits net of transaction costs". Exposure limits in Standard Charted-STCI Capital Market securities ltd UTI securities ltd. is offering an exposure limit of 1:4 for margin traders, i.e. for every 1000 Rs. One can buy the share worth of 4000 Rs.
Brokerage charges:
Different Company has different brokerage charges. Standard ChartedSTCI Capital Market securities ltd. takes 0.05% as brokerage for every transaction.
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Techniques:
The following are several basic strategies by which day traders attempt to make profits. Besides these, some day traders also use contrarian (reverse) strategies (more commonly seen in algorithmic trading) to trade specifically against irrational behavior from day traders using these approaches. Some of these approaches require shorting stocks instead of buying them normally: the trader borrows stock from his broker and sells the borrowed stock, hoping that the price will fall and he will be able to purchase the shares at a lower price. There are several technical problems with short sales - the broker may not have shares to lend in a specific issue, some short sales can only be made if the stock price or bid has just risen (known as an "up tick"), and the broker can call for the return of its shares at any time. Some of these restrictions (in particular the uptick rule) don't apply to trades of stocks that are actually shares of an exchangetraded fund. Playing news is primarily the realm of the day trader. The basic strategy is to buy a stock which has just announced good news, or short sell on bad news. Such events Provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. The most common cause for this is when rumors or estimates of the event (like those issued by market and industry analysts) were already circulated before the official release, and prices have already moved in anticipation. The news is said to be already in the stock price.
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Main article: Bid and ask

The numerical difference between the bid and ask prices is referred to as the spread between them. Most worldwide markets operate on a Bid and ask based system. The ask prices are immediate execution (market) prices for quick buyers (ask takers); bid prices for quick sellers (bid takers). If a trade is executed at market prices, closing that trade immediately without queuing would not get you back the amount paid because of the bid/ask difference. Spread is 2 sides of the same coin. The spread can be viewed as trading bonuses or costs according to different parties and different strategies. On one hand, traders who do NOT wish to queue their order, instead paying the market price, pay the spreads (costs). On the other hand, traders who wish to queue and wait for execution receive the spreads (bonuses). Some day trading strategies attempt to capture the spread as additional, or even the only, profits for successful trades.
Order types
Market Order - is an order to buy or sell a stock at the best bid or ask. A market order will get exercised for you, and fast, but you may not like the price! Of course, by then you have no choice but to take the price and hope your day Trade goes in the right direction. If the market is moving fast and you simply have to get in, sometimes a market order is your only choice. The floor traders love market orders from 'the paper' (For example off-pit traders) because this is how they make the majority of their money. Try to use market orders as little as possible. With a day trading spread betting account, market or desire as dangerous as on a standard brokerage account.
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Limit Order - is an order to buy or sell a stock at a certain price or better. This is the day trading order of choice for day traders as well as other traders. If you are afraid your day trading order might not get filled and are tempted to use a market order instead, Remember this rule: "Never chase the market".. It is more important that you get the trade on at the right price, than that you get on at all. If you buy it too expensive, or sell it too cheap, chances are you will regret it right away.
Stop Order -is an order that becomes a market order when a specified price (the stop price) is reached, used mostly to protect a day trading position from incurring larger than acceptable losses should the day trade start to go the wrong way. A "buy stop" order is placed above the current price and a "sell stop" order is placed below the current price. Until you are an experienced day trader, you should never open a position without also
creating a stop to protect yourself.
Regulations and restrictions

Day trading is considered a risky trading style, and regulations require brokerage firms to ask whether the clients understand the risks of day trading and whether they have prior trading experience before entering the market.
Advantages of day trading;

High return within a day No need to invest more money compared to delivery based trading. Immediate response or reaction. Exposure limit for trading is high. Can be converted into delivery. Different order types
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Disadvantages of day trading;

High risk. Need experience. Movements are difficult to predict within a day. Requires analytical mindset. Need to observe the every second. Discipline and mental toughness required. Not able to hold the share. Highly volatile due to availability of time for trading.
Day trading strategies; Basic if the scrip is bullIf the scrip is bearOther strategies Making strategy based on news available before the trading hour (planned strategy) Himat seide Ltd is going to take Italian firm Atlanta Ltd Q3 result is more than expected first buy then sell first sell then buy
(bullish strategy) (bullish strategy)
Income tax dept asked to patini computers to pay 600 core (bearish strategy) Making strategy based on news available at the trading hour (un planned strategy) Union cabinet approved the amendment in banking act allowing RBI more flexibility for setting the SLR (bullish on banking sector)
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RELIANCE in the race for GE PLASTIC (bullish) Making strategy based on experience, confident etc (speculative strategy) Seeing liquidity & volatility on the day Seeing highest & lowest trading on the day Playing in the middle hour Making strategy based on rumors (risky strategy) INFOSYS Q3 result below than expected (bearish strategy) RELAINCE Going to stock split (bullish strategy) Methods used for study; Market watching Intraday strategies Market quotes
Dos and donts for day traders; Dos Have an analytical mindset. Be flexible. Observe the market each and every second. Decide your total loss limit. Study the previous performance of the company. Watch the news. Invest money in several stocks or split your money.
Donts; Go against the main trend. Give up too easily. Cap your profits too soon. Sentimentally attached to stocks. Investing all money in one basket. 29
Limitations; High risk profile. People are not much aware of this. Most of the people prefer delivery based trading.
Key success factor for day trading; Discipline and mental toughness. Scientific approach to stocks. Strict stop-loss level. Select the sector or script which is in news. Use good information sources. Good use of strategies. Be analytical with the stocks. Learnings from the mistakes. Allocate money in different scripts.
Tips to online Investors. The price of some stocks, especially recent "hot" IPOs and high tech stocks can soar and drop suddenly. In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly. Investors trading over the Internet or online, who are used to instant access to their accounts and near instantaneous executions of their trades, especially need to understand how they can protect themselves in fast-moving markets.
30
You can limit your losses in fast-moving markets if you, Know what you are buying and the risks of your investment; Know how trading changes during fast markets and take additional steps to guard against the typical problems investors face in these markets. Online trading is quick and easy, online investing takes time. With a click of mouse, you can buy and sell stocks from more than 100 online brokers offering executions as low as $5 per transaction. Although online trading saves investors time and money, it does not take the homework out of making investment decisions. You may be able to make a trade in a nanosecond, but making wise investment decisions takes time. Before you trade, know why you are buying or selling, and the risk of your investment. Set your price limits on fast-moving stocks: market orders vs. limit orders. To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an Order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. When you place a market order, you can't control the price at which your order will be filled. For example, if you want to buy the stock of a "hot" IPO that was initially offered at Rs.100, but don't want to end up paying more than Rs.250 for the stock, you can place a limit order to buy the stock at any price up to Rs.250. By entering a limit order rather than a market order, you will not be caught buying the stock at Rs500 and then suffering immediate losses as the stock drops later in the day or the weeks ahead.
31
Remember that your limit order may never be executed because the market price may quickly surpass your limit before your order can be filled. But by using a limit order you also protect yourself from buying the stock at too high a price. Online trading is not always instantaneous. Investors may find that technological "choke points" can slow or prevent their orders from reaching an online firm. For example, problems can occur where: an investor's modem, computer, or Internet Service Provider is slow or faulty; a broker-dealer has inadequate hardware or its Internet Service Provider is slow or delayed; or Traffic on the Internet is heavy, slowing down overall usage. A capacity problem or limitation at any of these choke points can cause a delay or failure in an investor's attempt to access an online firm's automated trading system. Know your options for placing a trade if you are unable to access your account online. Most online trading firms offer alternatives for placing trades. These alternatives may include touch-tone telephone trades, faxing your order, or doing it the low-tech way--talking to a broker over the phone. Make sure you know whether using these different options may increase your costs. And remember, if you experience delays getting online, you may experience similar delays when you turn to one of these alternatives. If you place an order, don't assume it didn't go through. Some investors have mistakenly assumed that their orders have not been executed and place another order. They end up either owning twice as much stock as they could afford or wanted, or with sell orders, selling stock they do not
32
own. Talk with your firm about how you should handle a situation where you are unsure if your original order was executed. If you cancel an order, make sure the cancellation worked before placing another trade. When you cancel an online trade, it is important to make sure that your original transaction was not executed. Although you may receive an electronic receipt for the Cancellation, don't assume that that means the trade was canceled. Orders can only be canceled if they have not been executed. Ask your firm about how you should check to see if a cancellation order actually worked. If you purchase a security in a cash account, you must pay for it before you can sell it In a cash account, you must pay for the purchase of a stock before you sell it. If you buy and sell a stock before paying for it, you are free riding, which violates the credit extension provisions of the Reserve bank. If you free ride, your broker must "freeze your account for 90 days. You can still trade during the freeze, but you must fully pay for any purchase on the date you trade while the freeze is in effect. You can avoid the freeze if you fully pay for the stock within five days from the date of the purchase with funds that do not come from the sale of the stock. You can always ask your broker for an extension or waiver, but you may not get it. If you trade on margin, your broker can sell your securities without giving you a margin call Now is the time to reread your margin agreement and pay attention to the fine print. If your account has fallen below the firm's maintenance margin requirement, your broker has the legal right to sell your securities at any time without consulting you first.
33
Some investors have been rudely surprised that "margin calls" are a courtesy, not a requirement. Brokers are not required to make margin calls to their customers. Even when your broker offers you time to put more cash or securities into your account to meet a margin call, the broker can act without waiting for you to meet the call. In a rapidly declining market your broker can sell your entire margin account at a substantial loss to you, because the securities in the account have declined in value. No regulations require a trade to be executed within a certain time There are no Securities and Exchange Commission regulations that require a trade to be executed within a set period of time. But if firms advertise their speed of execution, they must not exaggerate or fail to tell investors about the possibility of significant delays. Margin Trading Tips: Create a Strategy or Plan- The most important thing you can do to succeed with day trading is to have a strategy! Having a day trading strategy or plan, means having a pre-defined set of rules we have developed for our day trading. Too many people start day trading without a plan in place, completely Unprepared. With a day trading strategy or plan we're way ahead of the crowd and we will increase our chance of making money with trading.
Follow the trading strategy - The easiest way to follow a trading strategy is to automate it. Almost every day trading strategy can be automated, and we could let the computer trade for us. We won't have to worry about our discipline any longer, as the computer mechanically trades every setup for us.
34
Control your losses - we've probably heard the saying Let your profits run. Unfortunately most traders let their losses run. A day trading plan will get us out of a position when the Predefined stop is hit. Our day trading plan should help us to limit our losses. By law, we are required to have some amount of money or more in an account for trading. However, you can day trade currency with only a few hundred rupees. The term day trading is a often misused and misunderstood. Real day trading means not holding on to our positions beyond the current trading day; in other words, not holding any position overnight. This is really the safest way to do day trading because we are not exposed to the potential losses that can happen when the stock market is closed. Unfortunately, many people who claim to be day traders hold stocks overnight because of fear or greed, many times setting themselves up to lose their money. Limit your losses! This is one of the most important rules that a day trader must learn. There is no rule of thumb as to how a day trader should limit his or her losses, but there are basic steps that can be followed. One of the main reasons people lose money in day trading is because they do not limit their losses. For example, a person that Claims to be "day trading" buys a stock and when the Stock starts dropping, he says to himself, "I am going to wait because the stock is going to go back up." The stock then continues to drop and he realizes that he should have sold it earlier, when he was losing less.
When
the
traditional
"closing"
time
(3:30
PM
IST)
of
the
stock market is near, he decides that he is going to hold the stock until the next day, when it will surely recover. News is released overnight that is negative for the entire market. When the market opens the next morning, all stocks are lower, including the stock of our "day trader." At this point, the "day trader" is a lot more nervous and a lot less wealthy. His denial reaches such gigantic proportions, that he convinces himself that he is really not a "day trader, but an "investor," and so
35
He is going to hold the stock as long as it takes to make up what he lost. As the stock market dips, He loses his sleep and becomes severely depressed, convinced that day trading does not work. Don't let this happen to you. Always, limit your losses! Don't day trade with all your money! This rule means that we will only use part of our capital for day trading. The reason being that we do not know for sure we will be successful in day trading or not. The bulk of our capital should always be in very solid, fundamentally sound investments or managed accounts. The learning curve for day trading varies from person to person. One factor is the person's investing and trading experience and knowledge. Some people can get started day trading in about one month, while for some it takes anywhere from three to six months. It is important to note that some people will never learn to day trade correctly. This can be because of a series of different factors, like a lack of discipline, an uncontrollable fear of losing money, etc.
Delivery based trading; Delivery based trading is a trading where one can buy the share and hold the share for n number of days. Where one can place the order and the share is delivered to his De-mat a/c and he sell it at any time or any of the working days. He can weight for the right time to sell it off. Here lot of analysis work to be done before buying a particular script. If he holds the share for long time he can enjoy the benefit of dividends, bonus shares etc. One can also convert day traded script into delivery based if it is not profitable or he is not satisfied by the profit he earned. In delivery based trading the risk is little bit low as compared with the day trading. The share price mainly depends on the companys profit/loss, mergers & acquisition s, overall performance.
36
Buy and hold is a long term investment strategy based on the concept that in the long run financial markets give a good rate of return despite periods of Volatility or decline. This viewpoint also holds that market timing, i.e. the concept that one can enter the market on the lows and sell on the highs, does not work or does not work for small investors so it is better to simply buy and hold. The antithesis of buy and hold is the concept of day trading in which money can be made in the short term if an individual tries to short on the peaks, and buy on the lows with greater money coming with greater volatility. One of the strongest arguments for the buy and hold strategy is the efficient market hypothesis: If every security is fairly valued at all times, then there is really no point to trade. Some take the buy and hold strategy to an extreme, advocating that you should never sell a security unless you need the money. Exposure limits in Standard Charted-STCI Capital Market securities ltd: Standard Charted-STCI Capital Markets securities is offering an exposure limit of 1:4 for delivery based traders, although all the exposure limits depends on the clients loyalty and the risk managers decisions in order to give the exposure limit. Brokerage charges: 0.4% in Standard Charted-STCI Capital Market securities ltd. for delivery based trading. It is much lesser than any other broking company.
Settlement system; If any one placed the order under delivery based trading all settlement will happens in T+2days i.e. trading day +2 days, that means he can dispatch the check or cash within these days, also if he buy/sell a particular script under this, he can obtain the profit/loss & script under his a/c within these days.
37
Advantages; For high return one can weight for a long term. Risk is low as compared to day trading. Need not to be much experienced. No keen market watch is required. Able to hold the shares & one can enjoy the benefits like dividends; bonus shares etc. if he holds the share for long time. Share price movements can be predicted for long time. Less volatile as compared with time (long run).
Disadvantages; Need good analytical kind of work. Depends on the companys performance. No order types so that to limit losses. Exposure limit for trading is low as compared to day trading. Flexibility is low.
Delivery based trading the investment, profit/loss made all depends on how the company performs year-on-year. The investor be aware of the companys ratios, quarter results, mergers &acquisitions, products, market share, brand Image etc, in order to earn profits. The investor should be very much analytical so that he can predict the future share price. He should not be sentimentally attached to any particular script, however he can weight until the company regains its positions in market.
38
Some companies share price movements from 29/6/07 to 18/07/07. Example-1: Script name; Redington. Date 29-06-2007 02-07-2007 03-07-2007 04-07-2007 05-07-2007 06-07-2007 09-07-2007 10-07-2007 11-07-2007 12-07-2007 13-07-2007 16-07-2007 17-07-2007 18-07-2007 Open 225.50 239.35 244.80 242.70 241.00 265.00 257.05 259.40 252.90 267.05 274.70 266.00 271.00 255.90 High 241.30 247.90 248.90 243.70 263.80 273.80 265.60 263.80 274.85 278.30 277.40 271.75 271.00 259.00 Low 225.00 237.40 236.65 236.00 233.55 253.15 253.10 252.20 251.00 264.50 261.00 264.20 253.10 247.05 Close 237.20 242.20 241.80 239.85 261.90 255.75 257.85 254.00 264.65 270.05 263.80 268.70 255.20 251.25
39
Example-2: Script name; India bulls. Date 29-06-2007 02-07-2007 03-07-2007 04-07-2007 05-07-2007 06-07-2007 09-07-2007 10-07-2007 11-07-2007 12-07-2007 13-07-2007 16-07-2007 17-07-2007 18-07-2007 Open 602.00 584.00 592.70 607.95 609.00 587.55 586.00 583.55 580.00 595.00 610.00 615.00 648.00 679.00 High 605.60 593.45 612.00 618.60 611.50 587.55 595.00 588.90 597.70 619.80 619.85 649.00 696.70 682.00 Low 585.00 582.10 588.00 514.35 578.00 575.25 577.00 563.00 574.00 595.00 607.50 611.50 647.00 645.20 Close 587.90 585.25 607.95 606.15 589.60 581.15 579.50 576.90 593.40 600.65 612.20 645.25 673.25 657.60
40
Example-3: script name; Net cast Date Prev Close Open 207 197.7 High 212 Low 192.75 Close 194.45 188.7 194.35 192.25 187.05 179.7 176.9 181.7 178.15 177.35 180.2 174.7
28-Jun-07 207.35 29-Jun-07 194.45 2-Jul-07 3-Jul-07 4-Jul-07 5-Jul-07 6-Jul-07 9-Jul-07 10-Jul-07 11-Jul-07 12-Jul-07 13-Jul-07 188.7 194.35 192.25 187.05 179.7 176.9 181.7 178.15 177.35 180.2
199.35 186.3
188.05 203.95 184.1 195.9 193 188 180 201.5 191.2
194.95 185.2 188.6 186 178.7 175.6 177
178.45 186.9 182 178
183.55 177.15 180.5 176 178.15 173.5
178.15 182.4 182 183.7
41
Table-1
Table showing occupation of the respondents.
Occupation Employed Self Employed Business Profession Total
No of respondent 17 9 15 9 50
Percentage 34 18 30 18 100
Analysis:
From the above table, it can be analyzed that 34%of the respondents are employed, 18% of the respondents belongs to self-employed, 30% of the respondents are belonging to business and 18% of the respondents are professionalisms.
Inference:
The above table indicates that, highest percentage i.e. 34% of respondents belongs to employed.
42
Chart-1
Chart showing the occupation of the respondents
40 35 30 25 20 15 10 5 0 Employed Self Employed Business profession 18 18 34 30
Employed Self Employed Business profession
Occupation
43
Table-2
Table showing respondents of age group.

Age group Less than 25yrs 26-35 36-45 45 above Total No of respondent 8 22 11 9 50 Percentage 16 44 22 18 100
Analysis:
The above table indicates that, 16% respondents are less than 25 years, 44% respondents are26 to 35 years, 22% respondents are 36 to 45 years and 18% respondent are 45 years above.
Inference:
The above table shows the age of the different respondents. The highest percentage of respondents belongs to the second group i.e. between 26 to 35 years.
44
Chart-2 Chart showing the age group of the respondents.
50 45 40 35 30 25 20 15 10 5 0 Less than 25yrs 26-35 36-45 45 above 16 22 18 44
Age group
45
Table-3 Table showing respondents awareness regarding on-line trading
Opinion
No of respondent
Percentage
Yes
36
72
No
14
28
Total
50
100
Analysis
The above table shows that, 72% respondents know about the on-line trading and 28% respondents dont know about on-line trading.
Inference
The awareness of on-line trading if much effective according to my survey 72 % of respondents know about on-line trading.
46
Chart-3 Chart showing the respondents awareness of on-line trading
80 72 70 60 50 40 30 20 10 0 Yes No 28
Opinion
47
Table-4 Table showing annual income of the respondents.
Annual income Less then 3lakh 3-5 lakhs 5 lakhs above Total
No of respondent 16 23 11 50
Percentage 32 46 22 100
Analysis
The above table indicates that, 32% respondents are earning less then Rs 3 lakhs, 46% respondents are earning between Rs.3,00, 000 to Rs.5,00, 000, and 22% respondents are earning more than 5,00,000.
Inference
The above table shows the earnings of the different respondents. The highest percentage of respondents belongs to the second group i.e. between Rs. 3, 00, 000 to Rs.5, 00, 000.
48
Cahrt-4 Chart showing the respondent annual income.
50 45 40 35 30 25 20 15 10 5 0 Less then 3lakh 32
46
22
3-5 lakhs
5 lakhs above
Annual income
49
Table-5 Table showing respondents preferences of time horizon for investment

Time horizon Short term Medium term Long term Total No of respondent 19 11 20 50 Percentage 38 22 40 100
Analysis
The above table indicates that, 38% respondents choose short term, 22% Respondents go for Medium terms and 40 % respondents choose long term for their investment.
Inference
The above table shows the different respondents. The highest percentage of respondents belongs to the last group i.e. long term for their investment.
50
Chart-5 Chart showing the respondent time horizon for time investment
45 40 40 35 30 25 20 15 10 5 0 Short term Medium term Long term 22 38
Time horizon
51
Table-6 Table showing respondent mode of transaction
Mode of transaction Visit stock market Online Trading Broker Others Total
Percentage 45 36 24 10 100
Analysis
From the above table, it can be analyzed that 45% of the respondents are visit stock market, 18% of the respondents are online trading, 36% of the respondents are broker and 10% of the respondents are others.
Reference
The above table indicates that, highest percentage of respondents belongs to visit stock market.
52
Chart-6 Chart showing the respondent mode of transaction
50 45 45 40 35 30 25 20 15 10 10 5 0 Visit stock market Online Trading broker others 24 36
Mode of transaction
53
Table-7 Table showing respondents frequent visit to the stock market.
Frequency of visits Regular Weekly Monthly Rarely Total
Percentage 28 12 20 40 100
Analysis
The above table indicates that, 28% of respondent are regularly visiting to the stock market, 12% of respondent are visiting weekly to the stock market, 20% of respondents are visiting monthly to the stock market and 40% respondents are visiting rarely to the stock market.
Inference
From the above table we can find that 20 out of 50 respondents are visiting rarely to the stock market.
54
Chart-7 The below chart showing the respondents frequent visit to the stock market
45 40 40 35 30 25 20 20 15 10 5 0 Regular Weekly Monthly Rarely 12 28
Frequency of visits
55
Table-8 The table showing respondents prefer to invest in trading
Options Marginal trading Delivery trading Total
No of respondent 31 19 50
Percentage 62 38 100
Analysis
The above table indicates that 62% of respondents are margin trading, 38% of respondents are delivery trading.
Inference
The highest percentage of respondents belongs to margin trading.
56
Chart-8 Chart showing the respondent of preference to invest in trading
70 62 60 50 40 30 20 10 0 Marginal trading Delivery trading 38
Options
57
Table-9 The table showing whether respondent analyze the stock before investing in trading
Opinion Yes No Total
Analysis
The above table indicates that 70% of respondents analyze the stock before investing, 30% of respondents are analyzing the stock before investing.
Inference
The highest percentage i.e. 70% are analyzing the stock before investing.
58
Chart-9 Chart showing the respondent of risk and return
80 70 70 60 50 40 30 30 20 10 0 Yes No
Opinion
59
Table-10 The table showing respondent perception on timings of online trading
Perception on timings Feasible Not Feasible Total No of respondent 28 22 50 Percentage 56 44 100
Analysis
The above table shows that, 56% of respondents feasible with perception timings of on-line trading and 44% respondent not feasible with perceptions timings of trading.
Inference
The highest number of respondents feasible with the timings of on-line trading.
60
Chart-10 Chart showing the respondent of perception on timings
60
56
50 44 40
30
20
10
0 Feasible Feasible
Perception on timings
61
Table-11 The table showing how long the respondents are in trading
Time period Less then1 year 1-2 year More then 2 year Total
No of respondent 24 16 10 50
Percentage 48 32 20 100
Analysis
The above table indicates that, 48% of respondents are less than 1 years, 32% of respondents are 1 to 2 years and 20% of respondents are more then 2 years.
Inference
The highest percentage of respondents belongs to the 1st group i.e. less than 1years.
62
Chart-11 Chart showing the respondents time period in trading
60
50
48
40 32 30 20 20
10
0 less then 1year 1-2 year More then 2year
Time period
63
Table-12 The table showing whether delivery trading or margin is risky
Analysis
The above table indicates that, 68% of respondents are margin trading and 32% of respondents are delivery trading.
Inference
The highest percentage i.e. 68% of respondent belongs to margin trading.
64
Chart-12 Chart showing whether delivery trading or margin is risky
80 70 60 50 40 32 30 20 10 0 Marginal trading Delivery trading 68
Options
65
Table-13 The table showing the respondent opinion whether margin trading or delivery is profitable
Analysis
The above table indicates that, 64% of respondents are margin trading, 36% of respondents are delivery trading of more profit.
Inference
The highest percentage of respondents belongs to margin trading.
66
Chart-13 Chart showing the respondent of which is more profit
70 64 60 50 40 30 20 10 0 Marginal trading Delivery trading
36
Options
67
Table-14 Table showing whether the respondent put their savings in one investment
Opinion Yes No Total No of respondent 16 34 50 Percentage 32 68 100
Analysis
The above table shows that, 32% of respondents put their money in more than one investment, 68% of respondents are putting their money in one investment.
Inference:
The most of all the respondents are putting the money in one investment.
68
Chart-14 Chart showing the respondent of put their savings in one investment
80 70 60 50 40 32 30 20 10 0 Yes No 68
Opinion
69
Table-15 Table showing the respondent opinion regarding service provided in standard charted-STCI capital market Ltd
Opinion Excellent Very good Good Average Total
Percentage 24 36 22 10 100
Analysis
The above table showing that, the opinion 24% respondents on service of Standard chartered-STCI capital market ltd is Excellent, 36% respondents on service of Standard chartered-STCI capital market ltd is very good, 30% respondents on service of Standard chartered-STCI capital market ltd is good, and 10% respondents on service of Standard chartered-STCI capital market ltd is average.
Inference
We can find the above table; the opinion of highest respondent belongs to second group i.e. very good.
70
Chart-15 Chart showing the respondent of opinion of the standard charted-STCI capital market Ltd
40 36 35 30 25 20 15 10 10 5 0 Excellent Very good Good Average 24 22
Opinion
71
Findings and suggestions

This chapter has been divided into two parts. The first deal with the finding and the second is making an attempt to suggest some suitable measures based on the views collected from the investors.
Findings
18% of the respondent belongs to profession group. 22 respondents out of 50 belongs to 26-35 age group. 28% of respondents are informed that they dont know about on -line trading. 16 respondents out of 50 belongs annual income of less then 3lakhs so standard chartered-STCI capital market should increase the respondents in this group. Out of 50% respondents 38% of the respondents preferred short-term period for investment in on line trading. 45% of the respondent are doing transaction through visit on the stock market .so it should be reduced and they have to for online trading Out of 50 respondents 20 are visited stock market rarely. Out of 50 respondents 38% of respondents preferred for delivery trading. 30% of respondents are not doing technical analysis for the stock before investing in trading. 44% of the respondent perception regarding timings of on-line is nonfeasible. 16 respondents out of 50 are ready to put their savings in one investment as it is risky for investors of they option for more interest schemes.
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SUGGESTIONS:
The company has to improve its trading size and sales
The investors have to do detail study on technical analysis, which will update their trading activities.
By conducting some sort of trading sessions Many customers are not aware of STCI Ltd, so the company has to go for more advertisement.
By promotion program i.e. more offers like one Re-corporate scheme etc. for De- mat service to be provided by the company.
By increasing the number of franchises. The company has to give better service regarding depository participant service.
The company has to improve the service still long periods. The company has to introduce new schemes to attract customers. The company has to provide technical information to its investors.
73
LEARNING
Knowledge about intraday and delivery based trading and their behavior. Entire process involved in the D-mat account opening and trading process. Capital markets in India. Trading tips. Knowledge about mutual funds. Risk management practices adopted by the company. Settlement and clearing norms. Placing the order trough offline and online mode.
74
CONCLUSION
It gives me immense pleasure to have an opportunity and privileges as a member in standard chartered-STCI capital market ltd. and gained a reasonable knowledge and experience both theoretical and practical aspects. As student of MBA, I come here for preparing a project work on A comparative study on margin trading v/s delivery based trading for standard chartered-STCI capital market ltd. securities ltd. I feel it would be my duty to express sincere and heart full gratitude to the ideologies in connection with my project.
I thank Mr.Prakasha.K (SM), standard chartered-STCI capital market ltd. for having explained about the concept of comparative study of margin trading and delivery based trading who supplied with the reference that has helped me in preparing the project report.
75
BIBLIOGRAPHY:
REFERANCE BOOKS:
SL.NO 1
BOOKS Research methodology
AUTHOR Kothari.C.R
PUBLICATIONS Newage international publishers
Security analysis and port Folio management
Prasanna Chandra
Tata Mc graw-hill
OTHERS: Annual report of the company. Company Broachers. Journals and magazines.
Websites: www.nseindia.com www.utisel.com www.usectrade.com www.equitymaster.com
76

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Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Meaning of Day Trading V/s Delivery based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

This project report contains two parts

2.1 Statement of the problem

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

2.2 Objectives of the study

2.3 Scope of the study

The following are the details of Sampling Sampling size

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

2.4 Sources of data collection

2.4.1 Primary Data:

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

2.4.2 Secondary Data:

2.5 LIMITATIONS OF THE STUDY:

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

CHAPTER-3 COMPANY PROFILE

MISSION & VISION

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

PRODUCTS AND SERVICES ONLINE

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

The Investment Banking Team's business philosophy emphasizes:

The Equity Capital Markets group offers the following services:

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Entertainment, Information Technology etc.

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

Providing online trading facility

THE CONCEPT OF BROKER:

OPENING OF DEMAT A/C

Lorven college of science and management

Margin Trading V/s Delivery Based Trading

DEPOSITORY AND A DEPOSITORY PARTICIPANT

DOCUMENT NEEDED TO OPEN AN DEMAT A/C