As On: May-18-2024 | 09:43 PM

Basic Stock Market Terms

Market The type of trade in which the Security falls
Symbol Unique short name assigned to any particular script by KSE
Change Difference between the last traded and close of the previous day’s price
Buy Volume No. of Securities investor intends to buy
Buy The rate at which investor intends to execute his/her buy order
Sell Volume No. of Securities investor intends to sell
Sell The rate at which investor intends to execute his/her Sell order
Last Volume No of Securities executed/traded in previous/last trade.
Last Price The price at which last trade took place
Avg Total No. of Securities traded during a particular time/day
High The highest rate at which the Security traded
Low The lowest rate at which the Security traded
Previous Close Previous day’s closing price
Trade Time The time at which the trade took place
Limit Order A limit order is when the user enters the order into the system with a specific price
Market Order A market order is when the user enters the order into the system without a specific price. The system will execute the order irrespective of price. The system will search for the quantity of order to be completed at any available price. In a rapidly moving market, a market order may be executed at a price higher or lower than the quote displayed on the website at the time of order entry.
Market Lot Market Lot is the normal unit of trading for security, which is 500 shares of stock having price less than Rs.50/- and 100 shares of stock having price above Rs.50/-.
Odd Lots For stocks, any transaction less than the market lot is usually considered to be an odd lot. These odd lots cannot be traded on the regular market and hence the Karachi Stock Exchange has initiated a separate ODD Lots Market.
Margin Call A margin call most often occurs when the amount of actual capital the investor has, drops below a set percent of the total investment. A margin call may also be triggered if the broker changes their minimum margin requirement which is the absolute minimum percentage of the total investment that one must have in direct equity.
Stop Loss Order A stop-loss order is a request to sell a security once the market price reaches or falls below an investor specified price. Once the target price has been reached or surpassed, the order becomes a “market” order. This is especially true in a fast-moving market where stock prices can change rapidly. A stop-loss order is typically used to sell a security, to lock in profits or limit losses if a security price falls. Setting a stop-loss
order for 5% below the price at which you bought the stock will limit your loss to 5%. Stoploss orders are only available when selling a security to close a position.
Short Sell Short selling refers to the practice of selling securities the seller owns in the hope of repurchasing them later at a lower price. This is done in an attempt to profit from an expected decline in price of a security. Such as a stock or a bond, is contrast to the ordinary investment practice, where an investor “goes long,” purchasing a security in the hope the price will rise.