How to Trade Stock Futures Profitably

What are Stock Futures? Stock futures are financial contracts, that is, legally binding agreement between two parties, to buy and sell underlying asset (stocks in this case) of specifying quantity in a future date at a price agreed upon between the buyer and the seller.  Once the stock future contract is agreed upon, both the buyer and seller are under obligation to buy or sell the underlying stock at the agreed price. The party that agrees to buy stock futures is said to take a long position. While the other party that agrees to sell the stock futures is said Continue ReadingHow to Trade Stock Futures Profitably

Dividend related terms all investors should know

What is a dividend? Dividend is the payment that a company makes to shareholders as part of their rewards for holding shares in the company.  This payment is usually made from the earnings of a company in a particular period. However, dividend is dependent on a company’s earnings. This means that a company may choose not to pay dividends in a particular year if its performance is not impressive. However, there is a class of stocks that entitle its holder a guaranteed dividends every year. This type of stocks is called preferred stocks. Preferred shareholders enjoy fixed income every year. Continue ReadingDividend related terms all investors should know

Bull Market: How Investors React Differently

What is Bull market? Bull market can be described as when prices of stocks listed in the stock exchange rise consistently for a period of time. The period may last for months or years. Before a market can be described as a bull market, it is expected that the prices of nothing less than eighty per cent of the stocks listed in the particular exchange should be on the rise. As a result of the rise in prices of most of the stocks in the market, this is expected to force the market index to rise too. The extent to Continue ReadingBull Market: How Investors React Differently