Equity Trading
Definition of Equity Trading
Some equity traders square-off their positions within one trading day. This is called intraday equity trading. Others look to ride price swings across days, weeks, or months. This is known as swing equity trading.
An individual who wants to engage in equity trading will need to open a trading & demat account. The charge for opening an equity trading account varies but the process is relatively simple.
Related Terms
Management Discussion & Analysis (MD&A)
Basis Of Allotment
The difference between the spot and futures prices forms the “basis” for the trading strategy. Hence the name basis trading. These are the two ways in which a trader may use the basis:
- Share allocation ratio
- Bids
- Demand
- Final price
- Retail Individual Investors (RII)
- Qualified Institutional Buyer (QIB)
- Non-Institutional Buyers (NIBs)
- High Net-worth Individuals (HNIs)
- Anchor Investors
Income Stocks
52 Week High
Compounded Annual Growth Rate (CAGR)
CAGR is an indicative measure of yearly returns growth that assumes the profits are reinvested. The formula to calculate Compound Annual Growth Rate is:
CAGR = [(Ending value/Beginning Value)^(1/N)]-1

