wordoftheday

The total market value of a Company, calculated by multiplying the number of shares issued and outstanding by their current market price.

A Member of the Exchange who helps execute buy and sell orders on behalf of clients.

Form of trading that uses modern telecommunication and computer technology to combine information transmission with trading in financial markets. This opposed to open outcry system when the orders were executed manually by the brokers in what was called the trading ring.

In a rolling settlement, each trading day (“T”) is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Currently the trades in rolling settlement in India are settled on a T+2 basis i.e. on the 2nd working day.

An order book is a list of orders that represents different offers from buyers and sellers for a specific security. It shows the prices and volumes that people in the market are willing to buy and sell the security for.

The rate at which the first transaction in a security is struck after the opening of the market.

An order to buy and sell a security that remains in effect until it is either cancelled by the customer or executed

The amount that has to be deposited with the Clearing Corporation before the purchase or sale of a security.

A process whereby buy and sell orders from different parts of the country come into the trading system and get matched on price time priority and lead to execution of a trade.