The stock market can be a rambling and overwhelming place for those new to investing. With so many terms and metrics to keep track of, it cannot be easy to know where to start. However, understanding key concepts and terms used in the stock market can help you make more informed investment decisions. This blog post will discuss essential terms and metrics used in the stock market, including volume, tbq and tsq, bull, bear, market order, limit order, and CMP in the share market.
The first vital term to know is the volume of a stock, which refers to the number of stocks/ shares traded in a given period. A high volume of trading activity can indicate a high level of interest in a particular stock and provide insight into the stock’s volatility and liquidity.
Another important metric is the total buy quantity and total sell quantity. TBQ and TSQ give an idea of how much of a stock is bought and sold by investors. A high total buy quantity would indicate more people are buying the stock, while a high total sell quantity would indicate more people are selling the stock. This can help you determine the overall sentiment and direction of the stock.
A bull market is a financial market described by increasing/ rising prices and optimistic sentiment. Investors in a bull market typically have a positive outlook and expect prices to continue to rise.
A bear market is the contrary of a bull market, characterized by falling prices and negative sentiment. Investors in a bear market typically have a pessimistic outlook and expect prices to continue to fall.
A market order is an order to sell or buy stock at the best available price when the order is placed. This order is used when the investor wants to buy or sell a stock as quickly as possible at the current market price.
A limit order is an order to sell or buy stock at a specific price or better. This type of order allows the investor to specify the exact price at which they are willing to buy or sell a stock. This can be useful for investors who want to sell or buy at a specific price, not at the market price.
CMP in share market stands for “current market price,” and it refers to the current price of a stock at which it trades on the stock market. The CMP is determined by supply and demand in the market, and it can fluctuate throughout the trading day. It is a stock’s most recent and updated value at a given time. Investors and traders use CMP to make buy and sell decisions, which is an important metric to monitor when tracking the performance of a stock. CMP is also known as the last traded price (LTP) or a stock’s closing price(CP). It is the price at which the last trade of that stock happened in the market.
Understanding these terms and metrics can help you make more informed decisions when buying or selling stocks. It’s always good to research and consult a financial advisor before making investment decisions. In this blog post, we will dive deeper into these concepts and provide more practical examples of how you can use them to make better investment decisions.
