Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

Wednesday, September 1, 2010

Do you want to make money in the stock market even if you don't own any shares?

Do you want to make money in the stock market even if you don't own any shares? You can do it through short selling. The technique involves selling shares you don't own at a higher price and then buying them back at a lower price. The difference between the two prices is your profit. However, this involves risk as the short seller does not own the shares during trading and it is probable that he may default on settlement or delivery. To reduce the risk, SEBI launched the Securities Lending and Borrowing Scheme (SLBS) on the NSE in April 2008.

Schematic representation of naked short sellin...Image via Wikipedia

When a trader short sells shares he doesn't own, it's termed a naked short sale. SLBS allows the trader to borrow shares at the initiation of the short sale. This is called covered short selling and ensures that the trader fulfils his obligation by imposing adequate margins. Under the scheme, the lenders give their idle shares to short sellers for a period ranging from one month to a year, for a fee that is determined by demand and supply. This gives long-term investors an opportunity to earn additional income. SLBS is applicable in the cash market.
However, short-selling can also be done in the derivatives market. An investor can go short on a stock or market index by selling a futures contract or by buying a put option. Futures enable a trader to buy or sell a fixed quantity of stocks or index (defined in terms of market lots) within a specified period, while a put option grants its buyer a right to sell. So if XYZ stock is trading at Rs 100, the futures seller as well as the buyer of a 100 strike put option will gain if the price falls below Rs 100 on the date of settlement.
However, short selling via the derivatives market has some drawbacks compared with doing it through SLBS in the cash market. In the derivatives market, the futures and options (F&O) are traded in market lots, so one has to buy or sell the number of contracts specified in the rulebook. On the other hand, in SLBS, the market lot is one stock. So if a trader wants to sell ITC futures, he needs to trade in a market lot of 1,000 shares. This means a wrong judgment could magnify the losses for the trader. However, by using SLBS, he can choose to short sell only one stock. This safeguards him from the ill-effects of leverage.
Pros and Cons
SLBS helps in exploiting arbitrage opportunities between the cash and derivatives markets. When the futures are trading at a discount to the cash market, one can short sell the shares by borrowing them through SLBS while simultaneously buying the futures contract. Let's assume the stock of ABC is trading at Rs 200 in the cash market and at Rs 180 in the futures market. The market lot is 100 shares, while the market-determined cost of borrowing the shares through SLBS is Rs 5 per share. If we borrow shares in the cash market and sell them, and simultaneously buy the futures contract, it will entail a profit of Rs 2,000 [100 x (200-180)]. Even after paying Rs 500 as borrowing cost, we will generate Rs 1,500 as riskless profit.
Though SLBS seems beneficial, investors have ignored it and all efforts to garner their interest have failed. Between June 2009 and June 2010, there have only been 106 trades, amounting to a meagre Rs 6.42 lakh. The majority of the participants prefer the derivatives segment for short selling. According to experts, the reason for the lack of interest is the high cost associated with SLBS. According to Santanu Syam, Executive Director of Operations at Angel Broking: "A borrower needs to pay the full amount up front, besides additional margins. The sum of all margins works out to as high as 100 per cent or sometimes even more." Also, SLBS is applicable only to stocks that are traded in the F&O segment.
The system forces investors to shell out more than they need to pay in the derivatives segment. For example, if an investor wants to borrow 125 shares of Infosys at a price of Rs 2,600, it would involve a payment of Rs 3.25 lakh, plus the cost of borrowing. Also, margins such as cash margins are as high as 25 per cent of the lending price. So a short seller will need to pay Rs 4.06 lakh. In the derivatives segment, the investor will pay about 40 per cent margin (all inclusive).
Therefore, the same could be short sold with a margin of Rs 1.3 lakh. Short selling is beneficial when the markets are overvalued or when stocks are trading at unwarranted premiums over their fair values. Also, it enhances liquidity and provides stability to the stock markets. "To make the scheme more useful, the regulator should revise the margin requirement and introduce scrips other than those listed in the F&O segment," says Syam. Hopefully, the recent approval by SEBI to allow physical settlement in the derivatives segment will be the impetus that revives SLBS.

Bombay Stock ExchangeImage via Wikipedia



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Wednesday, April 14, 2010

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Sunday, April 4, 2010

How To Make $5000+ Per month doing completely simple things

The is a proven Method that can make you to Earn $ 5000 per month in Auto pilot.
This particular technique will generate at least $600 per month (Minimal
effort) and Goes up to $4000+ (Depending on how dedicated you are but it
doesnt take time!)

Friday, March 26, 2010

Get paid $ simply for reading emails

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Thursday, August 20, 2009

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Here is what I do know: They are an international communications and mobile money transfer social network. They own all of their own technology and have plans to enter into 70 countries world-wide. People can use the company for unlimited free international calling from their cell phones and can also use their cell phones to send money globally at awesome rates.

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Monday, August 17, 2009

6 Smart Tips To Avoid the Stress of Shopping For Holiday Gifts

For those who find making their gifts list for the holidays a very exciting activity, good for you. Those who find it less than an appealing bustle don't fret. Many share your sentiment. The problem with making a list is that it seems to become never ending especially when you decide on checking it twice. Okay, you're no good ol' Saint Nick but hey, this is only looking at it with a bird's eye view. What you don't know is that buying the gifts could actually cause a bigger headache than the preparing of the list.

Who wants to wallow in the stress brought by holiday gift-giving? Holidays need not always put you in a major state of panic. Here's how to breeze through the holiday season with these tips on buying gifts.

1. Say no to a rigid gift list.

This doesn't mean that when you arrive on a situation like when you get to see a "spunkier" Ipod when you originally thought of giving out a Walkman, you'll always give in. The thing is that you should be open to alternatives with your choice of gifts. You might as wel, jot down all the possible options on that gift on your list in case you're having a hard time looking for it.

2. Nifty over Hefty.

An expensive price tag does not necessarily mean a perfect gift. What is more appreciated is creativity and when someone puts in genuine effort. Your budget does not have to suffer so much during the holidays. Doing your homework will get you a long, long way.

3. Doing some favor is a labor of love.

Instead of material presents, an act of kindness can very well serve as a very valuable holiday gift. One may run errands or do things like babysit for a busy aunt, cook dinner for a couple, or do a car wash. Of course, just don't forget to do this for free. One more thing, you can also do this goodie-two-shoes stuff not only for your family and friends but also for those less-fortunate.

4. Techie not Newbie.

For those who are still thinking that the Internet is only a mirage of the future, please wake up. You're so late! Online shopping is one of the many conveniences the Internet offers. Just click the mouse and voila! Before you are a wide array of brands and pricelists for your choice of gifts. Amazon.com, EBay, and Overstock.com are just a few of the best web sites that can help you in this endeavor. Just remember to provide ample time for delivery.

5. Comfort Zone.

During the commotion from shopping for holiday gifts, it's wise to wear your most comfortable outfits. This will make it easier for you to rummage through shelves of stuffs and will make scurrying not much of a hassle.

6. Early Bird Gets the Most Appreciation

Yes, there's still no better way of dealing with this gift-buying problem but to do it ahead of time. Creating your list about two months before the "season to be jolly" will help a lot in downsizing the hassles of this activity. Some can even go the length of preparing for it at least three months before the holidays.

Some people never have to worry about buying for gifts. Can you imagine having a closet of stuff always ready to be given out for various occasions? Yes, these cases exist. But you don't have to really succumb to such almost-paranoid acts. Following the simple but noble tips above will do. Click here to read More

Sunday, June 28, 2009

Getting Out Of Debt - The In's and Out's

Getting out of debt can seem like a challenge—but it’s more than possible—it’s easy. It may seem like an uphill struggle a lot of the time, but rest assured, you can get out of debt much faster and a lot more easily than you’d like to think. Read on to learn more.

To many people, getting out of debt ranks right up there with finding the yellow brick road out of oz—something that is fun to fantasize about but something that is not based in reality. The truth is that getting out of debt is achievable but you have to make a commitment to getting out of debt and you have to be serious about your intentions and your choices as you progress along the path.
Unless you are a lottery winner, you need to also be reasonable and acknowledge that it is impossible to get out of debt overnight, but with the right strategy, it can happen within a few years which is acceptable given it probably took you a few years to get into debt also. Many times people give up on getting out of debt because they lose enthusiasm when they realize that their efforts hardly seem to be making a dent in their owed amounts of money…but don’t let it get you down.
There are two vital things that you must do if you want to get out of debt successfully—the first is figure out why you are in debt. If you do not stop to look at your bad spending habits you likely will fall into debt again even if you are successful at getting out of debt. This is possibly the worst result that can happen, outside of getting into deeper debt which is why you must nail bad habits down and avoid them at all costs before getting trying to rid yourself of debt—otherwise you’ll just fall right back in.
The second step you must take is to seek the aid of a consultant who is professionally trained to offer debt assistance. Many community centers and non-profit organizations can set up a meeting or consultation for free, so take advantage of these opportunities. The people you speak to are trained to handle tough debt situations, and when they advise you it is truly for your own good and not their own financial gain.

Ready to get out of debt? Learn a whole lot more just by visiting.Get out of debt and start living a more stable and happy life

Sunday, May 17, 2009

Forex Trading Systems Make Online Trading Fast and Efficient

In the FOREX market, you can use two distinct types of trading systems. The first type is the
mechanical trading system. The mechanical trading system is relatively easy to use because an
automated process makes all trade decisions for you. This trading system is based on technical
and systematic analysis. Traders call it mechanical trading because they use computers to get
trading signals.

At the other side of the spectrum, the discretionary trading system uses gut instincts. It is based on an investor's experience, knowledge, and intuition. Some investors choose to use mechanical systems to understand current market conditions, and then analyze the details on their own before trading.

Mechanical Trading System

Of course, most FOREX traders use the mechanical trading system, simply because it automates the process and you can set it up with little effort. It is the easiest way to become a FOREX trader because it requires less training and education than discretionary trading. Mechanical trading systems are widely available online and some software is available in stores.

Mechanical trading systems take the human element out of FOREX trading. Through such a
system, you have no opportunity to make trading decisions based on greed, gut feel, or bad
judgment. Because a wise investor always invests with his head and not with his heart,
mechanical trading can help those investors who often base his or her decisions on emotions.

In recent years, the internet has made FOREX trading much easier by providing online trading
platforms. The brokerage firm you use will provide one for you. Some brokers have also
developed mechanical trading systems that their clients can use to trade. You can buy this
separately, or have one provided for you. Your broker may also provide valuable tools like
economic calendars, detailed analyses, and current currency charts. If your broker does not
provide these to you, you can buy them on your own or find a different brokerage firm to work
with.

Discretionary Trading Systems

Even when you opt to use the FOREX mechanical trading system, you should still understand the basics of the FOREX market to become an informed investor. There are various courses and
books on becoming a FOREX trader and you should take full advantage of them.

Those with limited knowledge in this area can gain just from testing a broker's trading software.
The trading software can easily teach you terms, how to read charts, and some basic trading
theories. Used with a book or online course, you can quickly grasp the principles behind FOREX.
An informed trader can therefore use both discretionary and mechanical trading systems to
achieve maximum profits.

If you're interested in entering the FOREX market, carefully consider your choices. It may be
best to start off by using mechanical trading systems before deciding of your own. In this way,
you can minimize losses and lessen the risk of betting over your head. Once you are familiar and
learned, you can start setting up the discretionary system of trading. Stay educated; it will pay
off!

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Thursday, April 16, 2009

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Thursday, February 5, 2009

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Monday, January 5, 2009

20 Big-Salary Jobs, No Degree Required

While the importance of earning a college degree to secure a good job has been ingrained in our brains for as long we can remember, a four-year degree is not the only path to a successful career.

Though schooling is a great way to develop skills and will no doubt enhance your credibility, a college education is no longer a requirement to securing a well-paying salary. Despite the fact that college graduates earn an average of $1 million more than high school graduates during their careers, according to the U.S. Census Bureau, it is possible to land a lucrative position otherwise.

Additionally, workers with a high school education or less have an abundance of positions open to them. In 2006, 66 million jobs -- about 44 percent of the total -- were available to workers with less than a high school education, according to the Bureau of Labor Statistics. By 2016, there are expected to be 71 million jobs available to these workers.

Just because these jobs don't require a college degree, however, doesn't mean that they don't require hard work or extensive training. Here are 20 of the highest-paying jobs that don't require a degree, according to CBSalary.com.


1. Margin department supervisor

Salary: $83,579/year

Primary duties: Overseeing a company's credit department, which manages customer credit accounts and approves or denies credit to customers.

2. Air traffic controller

Salary: $74,922/year

Primary duties: Controlling air traffic around airports according to established procedures and policies to ensure flight safety.

3. Automobile service station manager

Salary: $72,246/year

Primary duties: Supervising gas stations and planning and implementing policy and procedure like hours of operation, workers' duties and prices for products and services.

4. Real-estate broker

Salary: $71,994/year

Primary duties: Securing real-estate transactions, selling real estate, renting properties and arranging loans.

5. Web surfer

Salary: $70,604/year

Primary duties: Scouring through multiple Web sites to analyze and compare information and user experiences to collect information to help companies understand online users' behaviors.

6. Lead carpenter

Salary: $63,345/year

Primary duties: Leading the on-site completion of construction projects and performing all types of carpentry work and finishing.

7. Cable supervisor

Salary: $60,887/year

Primary duties: Supervising the activities of workers engaged in installation, maintenance and cable repair.

8. Chemical supervisor

Salary: $57,472/year

Primary duties: Overseeing workers who make chemical products, verifying that chemical processes are followed.

9. Home-care aide supervisor

Salary: $56,157/year

Primary duties: Directing aides who care for elderly or disabled people in a home environment, and monitoring the quality and quantity of services provided.

10. Medical facility housekeeping manager

Salary: $55,368/year

Primary duties: Managing the workers and housekeeping program in medical facilities to uphold sanitary and orderly conditions.

11. Flight service manager

Salary: $54,350/year

Primary duties: Ensuring that flight attendants conform to personal appearance and preflight requirements; compiling flight reports.

12. Locomotive engineer

Salary: $54,084/year

Primary duties: Driving electric, diesel-electric or gas-turbine-electric trains to transport passengers or freight.

13. Interior aircraft assembly supervisor

Salary: $53,606/year

Primary duties: Supervising the assembly of everything for the inside of an aircraft from mechanics to furniture.

14. Painting supervisor

Salary: $51,977/year

Primary duties: Overseeing all painting activities such as mixing paint, preparing surfaces before painting and applying decorative or protective finishes to various structures.

15. Gas plant operator

Salary: $51,676/year

Primary duties: Maintaining certain pressures in pipelines to produce and/or transport natural gas.

16. Payroll supervisor

Salary: $51,410/year

Primary duties: Managing employees working on company payroll, ensuring that pay calculation is in accordance with company policy, government regulations and tax codes.

17. Assembly supervisor

Salary: $50,462/year

Primary duties: Overseeing workers who use power tools and other equipment to assemble products.


18. Credit and collection supervisor

Salary: $50,330/year

Primary duties: Supervising employees engaged in the review of credit risks and collections; may also review client credit history to grant or deny extensions of credit.

19. Data control supervisor

Salary: $50,310/year

Primary duties: Managing data entry workers and assuming responsibility for those workers' tasks to be complete and accurate; may sometimes assist with assignments.

20. Reimbursement recovery specialist

Salary: $49,246/year

Primary duties: Negotiating cases where third-party liability reimbursement exists by investigating and identifying responsible third parties, then paying out those parties.

Wednesday, October 15, 2008

Guide to financial planning

STEP 1: FINANCIAL planning. If that word is a put off, don't let it be. It's the all important word in your money dictionary. Here, we simplify it for you.Step 1 - Put your finances in orderWe spend more than half our lives working and saving, but hardly spend any time planning on how to put that hard-earned money to work more effectively. So, how do you plan your financial life?Put your (financial) house in order Financial planning starts with a review of your overall financial profile, and not at investing. Before rushing to build an investment portfolio, you need to address the following issues:Insure your health, life and assetsStart by protecting your family’s current lifestyle against events/ expenses beyond your control. Buy appropriate insurance policies for your medical expenses, life, car, and other important assets.
Calculate: How much insurance you should buy Repay high-cost loansPaying credit card bills on time can save you more money in interest costs than most of your investments could earn you. Ditto for borrowings that cost you more than 15% pa. So, put high-cost loans behind you, and only then start building your investment portfolio.Put money aside for emergenciesDeploy some money in short-term investments that can be encashed on demand to help you tide over unforeseen needs and emergencies.
Draw up a savings planIncome - Expenditure = Savings
Do not leave this equation to chance – make a savings plan. Put away as much as you can, as regularly as you can, aim to save at least 15% of your take home annual income.


Step 2 : Prepare to invest Investment planning is simpler than you think, and more rewarding than you would imagine. Your age and investment size does not matter, nor do you have do be a money whiz – just do it NOW. So where do you start?Identify your financial goals What are your goals? What are you saving for – A house? Child's education/ marriage? New car? World tour? Retirement? Quantify this in terms of amount of money needed, and time horizons.To understand the process of defining and quantifying your future goals, use our Retirement Planner . Even if you do not have retirement planning as one of your financial goals, this planning tool should help you understand the process of financial goal planning. Understand your risk profile Depending on our income and needs, we all have different capacity for risk. We also have a different risk tolerance, based on our individual psychological make-up. Understand your risk profile and plan your portfolio accordingly.Find out: Your risk profile Plan your asset allocation Returns should not be your primary objective; you could end up taking more risk than you are financially/ psychologically capable of. It helps seek expert advice and create a portfolio with the right spread across asset classes to minimise risk of incurring a loss.Calculate: Your asset allocation

Step 3 : Start investing NOWThe only thing worse than investing late is not investing at all.Use the power of compounding Compounding is the best reason for starting early. The sooner you begin investing the better – every day that you are invested is a day that your money is working for you. Check out: How the power of compounding works Invest as per your needs If you know you will need cash next year (down payment for a house, child’s college fee etc), opt for a shorter term, low capital risk investment (such as liquid/ gilt/ money market funds, bank term deposits or top-rated company deposits/ fixed income investment options). Similarly, invest money that you will not need for 3-5 years in the stock market.Evaluate your investing skills Finding the right money manager for your investments is important. You could manage your money yourself, use professional money managers, or invest through mutual funds.Financial planning is not about financial expertise and hard work. All it needs is the right approach and discipline. Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.