Options in trading kse

The ready market means the market where trades are settled on rolling settlement basis, based on actual delivery. Similarly, a short position in a futures contract, or to be a short futures contract, means the holder of the position has an obligation to buy the underlying asset at a later date, to close out the position. New contract period starts at least two days before the close of the old contract. 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 an order where the investor will only send the Order Quantity and the exchange will execute the trade at the market price. Stop loss of money can be used for sell transactions as well where once the target price has been reached; market order is placed on the trigger price to buy back shares. Contracts Settlement executes on Tuesday following after the close of contract.

Those strategies include buying options known as puts. Contracts for different months shall trade simultaneously based on any corporate announcement expected in scrip. In these conditions, investors expect that price will rise again. Future market means where future contracts are traded on daily basis and settled on monthly basis. In Ready Market, all listed companies shares are traded during regular market time. Contracts are period specific by the exchange.

This means that if the stock falls below Rs. The investors entering into future market shall pay deposit against their exposures in accordance with Risk Management system of Broker. Contracts close on last Friday of the calendar month. Trading in future market takes place through the trading system available for trading in all markets. These contracts are traded on an organized and regulated futures exchange enabling buyers and sellers to transact business. Example: If a certain investor purchases Engro shares at Rs. This is done in an attempt to profit from an expected decline in price of a security. This is an order where the investor will send the Limit Price and the Order Quantity so the exchange will execute the trade when the market price reaches the Price specified. PSX is among the best performing markets of Asia.

There are 654 listed companies traded in the Pakistan Stock Exchange. Pakistan Stock Exchange is the biggest and oldest Stock Exchange of Pakistan. There are two hundred members registered with PSX out of which 9 are public listed companies. Including the public listed companies, 174 are corporate members and only 163 are trading actively. KSE risk management system covers all trading markets. There are two CFS prevailing currently in the market, CFS MK I and CFS MK II. In addition, the CFS Market is available for one hour and fifteen minutes after the close of trading. In case of non compliance on the settlement date, brokers give margin calls to the investor to clear the position. This is the reason CDC sub account is mandatory for all investors managing their securities movement. All these rules are monitored and audited by SECP time to time.

Stock Exchange Trading System. An investor can not open an account directly with Stock Exchange. The longer you invest, the higher your return expectations. If case of having physical securities, registration with CDC is required to have them placed in your account. The Stock Exchange specifies the period of provisional trading and the settlement dates of the IPO. Exchange trading systems monitor security wise, client wise and market wise exposure of each member in all markets. CDC where electronically securities transfer from one hand to another.

Month and applicable from the next Trading day. The principal trading activities are in ordinary shares but other securities like mutual certificates, government and corporate bonds, and TFCs are also offered in the market. Capital Markets in Pakistan consists of three Stock Exchanges: Karachi, Lahore and Islamabad. Monday will be delivered and paid on Wednesday. Investors can also get issued their current holding of shares in physical form from CDC. KSE allows members an exposure limit of 25 times their net balance which is calculated periodically.

Settlement is done based on the Position available in CDC account. In case the day end position crosses the exposure, Members are required to deposit a margin to maintain the net capital balance exposure clause. Securities traded in the exchanges are ordinary shares, right shares and TFCs. The system will take into account actual traded values for the purpose of calculating Exposure. Investors can buy and sell shares without paying for the shares bought or delivering the shares sold. The provisional trading starts from the date of publication of offering documents.

The CFS Market is available for the entire trading period and runs parallel to the Ready Market. To invest in stock market you need to open a trading account with a registered member of Stock Exchange. All trades due for settlement on that day will be excluded for calculation of Exposures, once settled. CFS or margin financing is the financing system available for investors who do not have money in their account to pay for the delivery on settlement date. Brokers maintains all legal requirements based on their standards given be SECP. The CFS Margins are to increase in proportion with increase in KSE100 Index.

Risk management system for KSE and members are different. Future Contracts are settled once in a month and their settlement dates are based on the suspension of their trade. Current CFS system is the replacement of old Badla system which was lacking speculation management where investors made wrong investment decisions without having basic financial resources represented by the shares sold by them or the money to pay for the shares bought by them. KSE allows provisional trading in the company which is going for IPO. All positions are taken on net basis for each market traded in the KSE and based on that Margin requirements are monitored. Saturdays, Sundays and holidays declared by the Exchange in advance.

Retrieved 23 May 2015. Retrieved 14 May 2015. It is headquartered in Busan, and has an office for cash markets and market oversight in Seoul. The securities and derivatives markets of former exchanges are now business divisions of Korea Exchange: the Stock Market Division, KOSDAQ Market Division and Derivatives Market Division. UN Global Compact and UNCTAD. This article about stock exchanges is a stub. You can help Wikipedia by expanding it. The Option Contract is an arrangement between the seller and the buyer in which the buyer has the right to buy or sell a security at the fixed time in future at a price stipulated at present. Though the Option Contracts were introduced in Europe and the US in early 1900s, they had a limited or negligible presence in local markets and as a result the regulator did not consider devising rules in this regard.

Index Option Contracts, which would provide an alternative trading mechanism for market players at the Karachi Stock Exchange. Option and make profit. The fit and proper criteria after it is devised by the KSE, has to be approved by the Securities and Exchange Commission of Pakistan for implementation. Under the option contract deal, a premium has to be paid by the buyer to the seller at the time of entering into contract. Under the regulation, trading in Option Contracts will take place only through the Karachi Automated Trading System. However this amount along with any return earned on it is to be kept separate by the exchange and cannot be used for any other purpose. It is expected that the trading in option market would take at lest two months as the necessary formalities are to be formulated by the KSE.

The regulation has limited the period of Option Contract to 90 days and it has been proposed that the KSE has to ensure a minimum of nine different types of Option Contracts are open at all the time so that there is no liquidity crunch in the options market. The main idea is to ensure that the writer of Option Contracts has sound financial and technical standing to qualify for this mode of trade, another official explained. However, under the regulations only the institutions and the brokers are allowed to issue the Options, and they too would have to fulfill the criteria for Option Contracts. Some of its milestones include the launching of the Stock Index Futures Market in 1996 and the Stock Index Options Market in 1997, as well as the adoption of electronic trading in 1988, warrant trading in 2000, and equity options and ETFs in 2002. The Stock Market Division of Korea Exchange, formerly an independent South Korean exchange, was established in 1956. The Korea Exchange was established in 2005 as a merger of the Korea Stock Exchange, the KOSDAQ and the Korea Futures Exchange. Its traded instruments include stocks, bonds, ETFs and REITs.

Company Limited by Guarantee. The transactions in CDC eligible securities are settled through NCCPL. The first index was the KSE 50 index. All divisor adjustment are made after the close of trading. Regional Hub for source of capital. The stamp duty is born by the buyer ad the seller. The period of contracts of each script is notified by the exchange. The minimum paid up capital of the company is Rs. Board base investor participation. Exchange Commission of Pakistan for approval.

Cross border listing of companies and trading of indices. Continuity Programs database backups. Index was introduced on November 1, 1991. The minimum public offering is Rs. KSE 30 Index and KMI 30 Index. Industry Person of the Year. KSE says the current computer system will remain unchanged, as will the personnel and business rules, so there will be minimum inconvenience for market participants. One change is that from the New Year both the KSE and KOFEX will guarantee the settlement of futures and options, while at present only KSE guarantees them.

No Reproduction Without Prior Authorizations. Citigroup in Seoul advises clients trading KSE futures and options through their securities account to open a futures and options account at KOFEX. However, if the number of orders violating the guidelines is excessive, IB may apply cancel fees for offending accounts after notification. These guidelines are intended to minimize system utilization for orders that do not have a reasonable likelihood at being executed because they are far away from the market. Certain products may trade shorter hours. IB will accept orders outside the indicated bands. Order Price Validity: The KSE has price guidelines for orders on futures and options contracts.

Click the Product Description link in the Products section below to find specific trading hours for a product. This paper presents key finding of the Financial System Stability Assessment for the Republic of Korea, including Reports on the Observance of Standards and Codes on Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, Insurance Regulation, Corporate Governance, and. Erik Banks, responsible for global risk management at Merrill Lynch in Hong Kong, has written another text on the derivatives field covering innovation in these instruments in Asia Pacific. The text acts as a detailed reference on the nature of these markets and the prospects for the Asian derivative. They usually buffer the volatility of growth investments, such as stock, with a substantial portion of their portfolio allocated to produce regular income and preserve principal. Using rumors as tips, as this can result in losses. You receive unsolicited phone calls offering investment opportunities and you have no idea how the company has obtained your phone number. Information regarding companies invested in and their economic profile should be exposed to the investor. Investors could avoid risk by diversifying its portfolio in different sectors, which usually pays off in terms of better returns.

These shares trade on a recognized stock market. Problems in settlement due to increased volume. Investors should also not enter into transactions that involve financing and irregular Badla amounts that are not stated within the rules and regulations of the Pakistan Stock Exchange. CDS is an electronic book entry system to record and transfer securities. Action plans; plan a scheme, act and follow through. Goals and risk tolerance should be the basis for establishing investment guidelines for your portfolio. Maintenance of huge vaults for safe keeping of certificates. You can buy large or small lots to match the amount of money you want to invest. But if the company performs badly, the share price may go down and the value of your investment will be reduced.

You can reduce your risks with careful planning. You can view risk as portfolio volatility, as the risk of not achieving your goals, or as the risk of permanent capital loss of money. What is Capital Growth? Traders should use research backed by fundamental reasoning. But stocks can also serve purposes other than growth. Shares of a particular company are offered by the following methods. Its basic purpose is to operate and maintain an electronic book entry settlement system for equity, debt and other financial instruments. But for this to work, you must be able to control your greed, as you do not know exactly when the top or bottom is reached.

When you hold stocks for the long run you get good days and bad days. The stock market can be said to be driven by two emotions: greed and fear. With good management, the value of your investment in shares of a company can grow over time so that your shares are worth more than you paid for them. Financial experts have many opinions on many things, but there is one fact on which they will all agree. This is one of the ways in which shares differ from deposit accounts. Buying shares can offer advantages over saving in deposit accounts: your investment may increase in value besides paying you dividends. Investor should be well aware of the financial background, management style and the nature of business of the company to make an adequate investment. You are told that the offer is for a limited time and that you MUST join or buy today.

For security reasons, AKD Trade insists that all users, existing and new, should not show their Passwords to other individuals. If the prices of shares go up, you can sell them for more than you paid. Risks of damaged, lost, forged and duplicate certificates. Information; it must be checked. Shares can provide you with a regular stream of income through dividends as well as the potential for your investments to grow in value. To track how your stocks are doing, you have to look at stock listings. No stamp duty on transfers in CDS. Generally, conservative investors feel that safeguarding what they have is their top priority. Different people trade in different styles.

Shares: It is the direct mode of investment in which investor directly sell and purchase stocks of various companies through the brokers or dealers. Symbol: This field is a one to five character symbol used as a sort of nickname for the company. No risk of damaged, lost, forged or duplicate certificates. Returns can be in the form of cash or additional shares of the company called bonus shares. In addition to the stock listings, other useful information about companies is available in the Annual Reports that reflects the balance sheet, income statement and cash flows and states the reasons for changes in these financial statements during the year. You buy when the upswing has begun, and sell as the downswing starts. This is an indicator of how much the price of the stock fluctuated throughout the previous day. How large a loss of money can I sustain?

Other players examine company financial statements and balance sheets, picking only those with low debt ratio, high cash flow, and high profit margin. Electronic book entry means that the securities do not physically change hands and the transfer from one client account to another takes place electronically. Over the long term, increasing your risk typically leads to higher expected returns, while lowering your risk leads to lower expected returns. What kind of risk am I willing to take? Equities are mainly growth investments, and can include things like real estate, art, and gold. High, Low and Close: These are the highest and lowest price of the stock the day before, and the closing price for the day before.

Why do Investors Buy Shares? Many investors attempt to time the market: they try to figure out when the market is going up and buy into it before it does, and then figure out when it is going to crash and sell everything just before it does. You are offered an investment product that guarantees large profits with no financial risk. Delivery charges cost incurred by the investor for delivery transactions. Technical analysis could be helpful in determining how far the price might fall and could provide help in indicating a good time to buy. This in turn has led to difficulty in handling the share certificates. Investors should be aware of the fact that investments in the stock usually do not result in immediate profits. Daily trade charges cost incurred by the investor for intra day transactions.

How Do you Decide when a Stock is Attractive to Purchase? An investor should have excess reserves with its broker to protect himself against frequent fluctuations in stock. The capital markets of Pakistan have witnessed a rapid growth resulting in increased trading volume. Technical analysis looks at factors like volume of trading, cyclical behavior, trends, moving averages and many others. These guidelines will enable you to structure your portfolio and provide you with a framework that allows you to review and understand your investment performance. How much Money Can You Afford to Invest?

Moreover, the manual system was also plagued by long delays, risks of damage and considerable time delays. Capital and time investment required for issue and dispatch of share certificates, cash dividend, bonus and right issues. Knowledge; Stock Market principles and practices are unique. Unfortunately such spot on accuracy is usually impossible to achieve, so what you can do is try to catch a portion of each big swing. The aim of investing in stocks and shares is to buy at a low and sell at a high, but knowing when, is the problem. Risk and returns are generally related.

But what style is right for you? Higher returns are often related with higher degree of risk. Shrewd and Thrifty; be prudent with your money. Net change: This is the change of the price of the stock from the previous day. Companies carry out a rights issue when they want to raise additional funds to finance their capital requirements. Specifically, What are my investment objectives? Dividends are returns paid to shareholders out of the profits of the company. Stocks and shares are the most volatile asset class in terms of price movements and thus, the most risky. While there are as many investing styles as there are investors, most people fall more or less into one of three broad categories: conservative, moderate, and aggressive.

Do I want to use leverage? Which stocks should you choose and how long should you hold them? The shareholders can be rewarded for taking this risk and the potential return on your money can be higher than that on other investments. The goal of the investor, in most cases, is to maximize return. You share the rewards when the company does well and the price of the shares goes up. Your investing style comes from a variety of things: your age, personality, personal experience, and financial circumstances to name a few. Emotions; being emotional can effect reasoning. Aggressive investors concentrate on investments that have the potential for significant growth. However the most popular equity investments that people rely on for growth are stocks.

Understanding risk is an integral factor that is required to be evaluated before making any investment. The structure varies from broker to broker in most cases. There are few questions investors need to ask themselves and review with their broker before starting to invest. What is my time horizon? In some cases brokers advise to invest in stocks that are not highly correlated with stock index due to the small capitalization of that particular scrip in the market. This gives you an idea whether the price is dropping or rising. Stocks in publicly traded companies are bought and sold at a stock market also known as a stock exchange. What is this money for? However, this is not always so. Now, assuming you make good decisions, the more frequently you trade, the more profit you profit.

What Does the Company Do? Investor should not take unnecessary risk to earn higher profits because it posts a great deal of threat to its basic equity and investments. Understanding why you are investing is the first step in structuring a portfolio. The custody and safe keeping of physical certificates required maintenance of huge vaults by the individuals and institutions and the physical settlement of certificates were no longer feasible. It is important that you work closely with your advisor so you both have a clear understanding of your specific needs and goals. Substantial reduction of paperwork during book closure. They are willing to take the risk of losing some of their principal, with the expectation that they will realize greater returns. Own Investment method vs. This is capital growth. Over borrowing; loan repayment is not an investment. In addition to potential capital gains, stocks also have the potential to pay dividends.

In case of new issues the issuers would take more than 2 months for the dispatch of certificates. Long share transfer procedure taking up to 45 days. Reduced workload due to paperless settlement environment. Other factors, such as the performance of the stock market as a whole and the general economic climate, may also affect the price of your shares. It is highly recommended that the investors should have a proper understanding of the commission structure of the brokerage service. Convenient pledging of securities. No impact in case of sudden increase of settlement volumes.

Investment protection; safety of your portfolio and Share Capital is more important. Company name: This field is usually abbreviated in the listings, and listed alphabetically. The simple secret to success is to stay invested. Instant credit of bonus, rights and new issues. Just because the chocolate tastes good does not mean that the position of the company is strong. For some occasions, which may occur for an extended period of time, higher levels of risk may lead to lower returns, and vice versa.

Increased volume of book keeping and paper work. Fundamental analysis looks at factors such as earnings, cash flow, debt, strength in its industry, outlook for the industry, general economic factors, interest rates, and so on. Moderate investors want to increase the value of their portfolios while protecting their assets from the risk of major losses. These investors want to avoid risk particularly the risk of losing any principal even if that means they will have to settle for very modest returns. Opinion, facts or fiction? The same is said for the PIN Code. CDC is to operate as a central securities depository on behalf of the financial services industry to support an effective capital market system that will attract institutional and retail level investors from Pakistan and abroad. There can be considerable risk of loss of money in electronic trading. While you sense the promise and enjoy the excitement of modern technology, like so many others, you probably feel overwhelmed, frustrated, even lost at the prospect of putting your savings online and on the line. Over the long run, equities do go up and have proven to be the most profitable investment by far.

This is the most common way of buying and selling shares. And finally, day traders buy and sell every day. How much volatility am I willing to accept? Minimize the risk of losing your savings to scams by recognizing the different types of illegal investment schemes that are plaguing our society. Is the Company Profitable? Some investors use both approaches. What are the consequences if I do not achieve my investment objectives? Volume: The volume is the amount of stocks that were traded the day before. Earnings History and Outlook?

Each share represents a small stake in the equity of a company. You must step away from the crowd and not let them take over your rational reasoning and action. Who Runs the Company? Instantaneous transfers of ownership. If you decide to sell your shares you will need to deliver share certificates to the broker in time for the transaction to be completed. Some investors like companies with strongest earnings. This is called capital profit. Out of the above, the most secure and convenient of different account types is the investor account as the account remains in direct control of the investor. September 2008 and comprises of 30 Companies that quality the KMI Shariah screening criteria and is weighted by float adjusted market capitalization.

Normally in spot transactions the trade is settled within 24 hours. This arises not because of the defaults by the original parties of the trade but by a third party for example failure of clearing bank, custodian etc. This risk is rare in current day market scenario wherein the clearing corporation makes sure that delivery versus payment mechanism works properly. Likewise, the capitalization of stock markets or economic regions may be compared to other economic indicators. The stop price for buy orders is placed above the current market price whereas for sell orders, it is placed below the existing market price. When rationally evaluating a potential transaction, it is important to consider transaction costs that might prove significant. For example, an order may generate a partial execution upon entry, while the remaining open order remains in the order book.

This order is executed at a specified price or, after a given stop price has been achieved. Financial institutions including banks are in the business of financing as they provide capital to businesses, consumers and investors to help them realize their investment or consumption aspirations. It is the responsibility of the broker to explain different terms and conditions of the trade transactions and their implications before entering into an agreement with an investor. The ownership interest is represented by shares reflecting the assets and earnings. The operation of NCSS has rapidly gaining acceptance and now majority of the securities have been inducted into the system for settlement purpose. Index of KSE available at ICM as well as on the website of KSE.

For deliverable contracts, all bought and sold positions in existence as at the close of trading in the relevant contract month shall be settled via physical delivery. When an investor has decided to buy shares in a particular company, he contacts his broker. The process continues as long as the incoming order remains executable. It is the process of reporting, matching, correcting securities transaction and the ultimate delivery or receipt of net balances. Such account can only be operated by the relevant account holder. In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange. For example, most people, when buying or selling a stock must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. The risk of market orders is that you have no control over what the execution price is. NCSS provides stability to the market by capping the systemic risk to a great extent.

Spot transactions imply delivery upon payment. Again, if the limit orders have the same price limit, the criterion used for establishing matching priority is the order timestamp. If not executed upon entry, an order is held in the central order book. And order which has the features of both stop order and that of limit order is termed as Stop Limit Order. In general, a capital weighted index is composed of a basket of securities, which captures the change in market capitalization due to the variation in prices. Clearing Company handles the validation, delivery and settlement of securities transactions undertaken on the exchange.

KSE, representing almost all sectors of the KSE and includes the largest companies on the basis of their market capitalization. The features of this agreement that reduce the chances of any dispute on terms and conditions which relate to placement of order, trade confirmation, brokerage charges by a broker and delivery of securities and payments. Quotes and Orders are entered in the Stock Exchange through the Order Entry Window of the Electronic Trading Terminals, provided to the brokers, of the exchanges. An order that is placed through a broker for the intention of selling a security when it achieves a certain price is called as Stop loss of money Order. For selling, again the investor contacts his broker. Market orders have the highest priority for matching. An act of exchange of a less liquid asset with a more liquid asset is also called liquidation. The limit price for sell orders is set above the current market price. The index includes only the top 30 most liquid companies listed on the KSE.

This risk is lessened by reducing time gap between trading and settlement and by legally binding netting systems. This is the default order type for all single option, spread and stock orders. Also, it is possible for a single order to generate multiple executions at different points in time. Clearing corporation acts as a third party to every transaction and delivers the securities to the buyer upon receiving the funds and transfers funds to the seller upon receiving the securities. The price is determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract. Therefore this type of account is highly recommended to the investors.

An efficient settlement system diminishes risks inherent in the settlement system. Market, Limit, Stop loss of money, etc. Stock exchange through which brokers, financial institutions, and other parties settle trades. The service of CDC is efficient, effective and secure. All settlement occurs purely on cash basis. Stock exchange indices are not only barometers of the economy and public opinion of the state of economy, but are also used by many technical analysts to forecast and evaluate market trends and base their opinion on the future direction of the market. The orders already present in the order book are always executed at their specified limit price. Settlement systems, purchase and sale of securities is procured and the balance is settled on the second day following the day of trade.

An order which an investor makes through a broker or brokerage service to purchase or sell an investment straightaway at the best available existing price is said to be Market Order. Equity instruments traded on the exchanges are in the form of shares that proves the ownership interest of common and preferred stock holders in a company. The earliest market order entered receives the highest priority. Used for securities owned beneficially by Account Holders. So he loses the profit, that would have accumulated between the date of original transaction and date of replacement transaction, had the counter party would not have defaulted, but not the principal because by that time he has not delivered his obligations. In Central Depository System, ownership will be changed without physical movements of securities or execution of transfer deeds. CDS is purely a settlement vehicle and will not affect the trading in any manner whatsoever. An order placed with a brokerage to purchase or sell a set amount of shares at a stated price is said to be Limit Order.

All stock exchanges in the country have introduced computerized trading system to provide a fair, transparent, and efficient market mechanism to facilitate the market participants, including the investors. The Cash Settled Futures Contract is a standardized contract, to buy or sell a certain underlying instrument at a certain date in the future, at specified price. Market order assures an execution, but do not guarantee a price or time of execution. The limit price for buy orders is placed below the current market price. Examples include bills of exchange, Treasury Bills, TFCs, bonds, notes, CDs, etc. Each Account Holder in the system is allocated a main account by virtue of being an Account Holder in the CDS.

The ownership will be transferred as soon as securities move from one account to another. Limit orders will be filled at the limit price or better, but are not assured a fill. This account is used for keeping securities belonging individually to each of the clients of an Account Holder. It has also improved efficiency of the settlement process by introducing a consolidated and geographically neutral clearing and settlement system. Same risks of market orders apply to stop orders. Each contract is to buy or sell a fixed value of the index.

All executions are subject to the restrictions of the Market Order Matching Range. Orders going into the order book are always matched at the appropriate prices available in the order book, up to the specified limit price. SECP in this regard and which are notified to the market participants in advance. It tracks the record and performance of members and their net worth. Debt instruments are the written promise to repay a debt. The stock broker is obliged to sell at the best price he can get, but an investor can decide what should be the minimum price he is prepared to accept. ISE is called Ultra. Allowing parties to have accounts with multiple clearing banks reduces this risk. Clearing and Settlement is one of the most important aspects in the operation of the securities business.

On a very basic level, any stock market index is simply a numerical value that measures the change in the market. If several market orders are booked in the order book, the system takes into account the timestamp of the orders to establish matching priority. By opening an investor account with CDC, the client comes with direct contact of CDC. This agreement is mandatory. Market capitalization also known as capitalized value of company, is a measurement of economic size equal to the share price times the number of shares outstanding of a public company. This account is mainly used as a transit account for movement of securities.

Deliverable futures contracts are the forward contracts to buy or sell a certain underlying instrument with actual delivery of the underlying instrument occurring. National Clearing and Settlement System Regulations, 2003. It is an act of providing funds for business activities, making purchases or investing in capital or money markets. Settlement occurs 30 days after the contract is purchased. The broker groups all such clients in their group accounts. Each Account Holder in the system who opts to avail the Delivery vs. Because the limit order is not the market order therefore, it may not be executed if the price stated by the investor cannot be met during the tenure in which the order is left open. Stock Exchange building or at remote premises of the broker.

The All Share Index consists of all the companies listed on the KSE. Stock Index Futures Contract normally occurs 90 days after the contract is purchased. It reduces the time between execution and settlement of trades, which in turn reduces the market risk. Since the purpose of the market order is to be executed as quickly as possible at the best possible price, it must be entered without execution restrictions. Money, or cash in hand, is the most liquid asset. Stop loss of money order opens or closes a position by buying or selling in case the market rises or falls respectively. In Pakistan, the main objective for the construction of an index is to track the performance of the various listed stocks according to their market capitalization. Electronic Book Entry System to record and maintain securities and to register their transfer. The open portion may get executed a minute later, an hour later, or even a day later, if its validity extends beyond the current trading day.

Stock Index Futures are traded in a number of contracts. Movements of stock exchange indices are popularly considered as key indicators of the economy of a country. Electronic trading, either directly with counterparties or through a broker, has transformed traditional methods of trading through exchanges.