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What is SLR & SLR Definition ?

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What is Statutory Liquidity Ratio (SLR Definition)

SLR (Statutory Liquidity Ratio) is the money a commercial bank needs to preserve in the form of cash, or gold or government authorized securities (Bonds) before providing credit to their own customers. SLR rate is decided by the RBI (Reserve Bank of India) as well as to control the expansion of bank credit.

The maximum limit of SLR is 40% and minimum limit of SLR is 24%. It’s 26 now. This limitation is added by RBI on banks to make funds available to customers on demand at your earliest convenience. Gold and G Secs (or Gilts) are included along with cash because the two are highly liquid and secure assets.

The RBI can increase the SLR to contain inflation, suck liquidity in the market, to tighten the measure to protect the customers’ money. In a growing economy banks would probably like to invest in stock market, not in G Secs or Gold as the latter would yield less returns. Another reason why is long term G Secs (or any bond) are sensitive to interest rate changes. But in an emerging economy interest change is a usual activity.

What is Cash Reserve Ration ? What is CRR ?

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Cash Reserve Ration (CRR Definition)

It’s the low percentage of amount that each bank has got to deposit to the RBI. If RBI chooses to improve the portion of the, the accessible amount with all the banks boils down. RBI is using this way (increase of CRR rate), to drain out the excessive cash within the banks.

With regard to Example:

Banking companies are required to keep a percentage of their deposits as cash, meaning that in the event you deposit Rs. 100/- in your bank, consequently bank cannot make use of the whole Rs. 100/- for lending or investment cause. They need to keep a part associated with the deposit as cash and may use just the remaining amount for lending/investment. This minimal percentage that is based on the central bank is referred to as Cash Reserve Ratio.

What is Repo Rate and Reverse Repo Rate?

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Click Here to Help in future (Stock Market Trading)

A Repo is a item of money market. Generally, Reserve Bank and Commercial Banks engage in repo transactions but not limited to these two. Individuals, banks, financial institutes can also engage in Repo. It is also know as Repurchase Agreement.

The rate at which the RBI gives money to commercial banks is called Repo Rate. This item is of monetary policy. When banks have any shortage of funds they can borrow from the RBI. So, Repo rate is interest rate which is less than Bonds as the borrowing is collateral.

A reducing in the repo rate benefits banks get money at a cheaper rate and vice versa. The repo rate in India and same as the discount rate in the US.

Reverse Repo rate is simply the rate at that the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe and secure hands with a good interest. An additional, reverse repo Reserve Bank borrows money from banks by lending securities. The interest paid by Reserve Bank in this case is called reverse repo rate.

repo-rate

What is CRR ? (Cash Reserve Ration)

What is SLR ?

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

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Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

What is Nifty Bees?

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NIFTY BEES is the first Exchange Traded Fund in India, which aims to offer investment profits that directly match to the total returns of Stocks as displayed by the S&P CNX Nifty Index. It provides you the most diversified exposure at lowest possible unit size. Roughly speaking, value of Nifty bees will be 1/10th value of the current Nifty price.

Nifty Bees can be purchased or sold like a share by using any NSE Stock broker at prices available on the screen. The fundamental portfolio of Nifty BeES very closely duplicated of the S&P CNX Nifty. That’s why, Nifty BeES tracks the movement of S&P CNX Nifty.

Why NFITYBEES suggested?

  • NiftyBeeS is Less price which is listed and traded on the NSE, Nifty BeES can be bought or sold, although the trading day just by a call to your broker. This gives you the power to answer fast to changes in the market. You can place limit orders. Nifty BeES can be held in your DP account with other portfolio holdings.
  • It is Simple which overall performance of Nifty BeES is just the result of performance of shares in the S&P CNX Nifty Index and demand & supply in the market. There is no Fund manager bias.
  • Nifty BeES duplicates the S&P CNX Nifty, investors can know at any given point of time where and how much is invested in each stock.
  • While buying a single stock, one has to analyze the stock, management quality, future prospects and current valuation, which is not the case in ETF because Investing in just one Stock gives exposure to fifty shares of the S&P CNX Nifty. This allows investors to spread risk with one single decision.
  1. What is the Meaning of Sensex ?
  2. What is the definition of Nifty ?
  3. List of Nifty 50 Stock

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

Types of Traders and Definitions: For Commodity Traders and Beginner

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A few traders nervous to stay in the market overnight, while others may stay in for a year or more. Every person must find the type of trading that suits his or her personality. Anyone who is not sure about this must do a lot of personal analysis and study until he/she knows what he/she likes best. Below definitions is for non-spreading speculators who may trade various lengths of time. Part of being a first-class trader is knowing how long to stay in a trade. A lot of help is give below by some useful Definitions for beginner.

DEFINITIONS

Acceleration: rate of change in speed of force or power.

Amplitude: change up and down in price.

Balance point: pivotal and critical price of the market.

Bear: Market going downstairs.

Break-out: overcoming resistance, mainly from a blocking area.

Bull: Market going upstairs.

Congestion: uneven price range.

Climax day: daily reversal pattern having long and closing near the high (or low) for the daylight.

CFTC: Commodity Futures Trading Commission.

Cycles: returning price changes of one and the same time spans.

Dow Theory: higher highs with higher lows, or lower higher lower lows from previous swing, indicating change of direction.

Fib: abbreviation for Fibonacci.

Flop over: a new parallel, same width as previous channel.

Fourier: high math method.

Gap: an opening left on price charts. A gap is where there would be turning point. The force of the market causes price to jump over this normal pivot spot. For this reason, lines through gaps are considered as through turning points.

Inside day: a day with both the high and the low between the previous day;’s high and low.

Leg: same as swing, a distance between two pivots or turning points of the market.

Labored move: price pattern confined to a slanting narrow channel.

Moving average: method of filtering or smoothing price action.

Momentum: HAP will use momentum and acceleration as synonyms. The mass generally associated with momentum is the bullish consensus behind a move.

Odds: percent of expected change of the market price.

Outside day: a day with both high and low beyond the previous day’s high and low.

Pivot: reversing or change of direction or same as turning point.

Price action: commodity price movement, on graphs, for a day or some other time period.

Range: also called thrust, swing or leg. It is the distance between two pivots.

Resistance area: place where price meets a lot of buying or selling and stalls in its thrust.

Runaway market: fast move of price in one direction.

Shake-out: stops being run, but with no continuation. A false break-out.

Short covering or long covering: changing from a position, which entails getting twice the amount if reversing.

Support area: same as resistance area, except they each are at opposite sides of buying or selling pressure.

Swing: distance between two pivots.

– From Advanced Commodity Trading Techniques

What is Sensex : Definition & History & Finance

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SENSEX is the short term for the words “Sensitive Index” and is associated with the Bombay (Mumbai) Stock Exchage (BSE).

What is meaning of Sensex?

The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of Sensex. It is biggest and oldest index. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same – some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE 50) authorities review and modify its composition to make sure it reflects current market conditions. Actually, Sensex is nothing… I will post very soon about sensex calculation & Sensex history …

Today the Sensex constitutes of the following companies:

Company Name (Industry)
1.    ACC (Cement – Major)
2.    Bharti Airtel (Telecommunications – Service)
3.    BHEL (Engineering – Heavy)
4.    DLF (Construction & Contracting – Real Estate)
5.    Grasim (Diversified)
6.    HDFC Bank (Banks – Private Sector)
7.    HDFC (Finance – Housing)
8.    Hindalco (Aluminium)
9.    HUL (Personal Care)
10.    ICICI Bank (Banks – Private Sector)
11.    Infosys (Computers – Software)
12.    ITC (Cigarettes)
13.    Jaiprakash Associates (Construction & Contracting – Civil)
14.    Larsen & Toubro (Diversified)
15.    Mahindra and Mahindra (Auto – Cars & Jeeps)
16.    Maruti Suzuki (Auto – Cars & Jeeps)
17.    NTPC (Power – Generation/Distribution)
18.    ONGC (Oil Drilling And Exploration)
19.    Ranbaxy Labs (Pharmaceuticals)
20.    Reliance Communications (Telecommunications – Service)
21.    Reliance Industries Limited (Diversified)
22.    Reliance Infrastructure (Power – Generation/Distribution)
23.    State Bank of India (Banks – Public Sector)
24.    Sterlite Industries (Metals – Non Ferrous)
25.    Sun Pharma (Pharmaceuticals)
26.    Tata Motors (Auto – LCVs/HCVs)
27.    Tata Power (Power – Generation/Distribution)
28.    Tata Steel (Steel – Large)
29.    TCS (Computers – Software)
30.    Wipro (Computers – Software)

…Sexsen is now in 2012…

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.