What is CE and PE in Stock Market – A Beginner’s Guide
If you also wants to trade call options (CE) and put options (PE) in the stock market, then you should have the information about. Today in this blog we will discuss What is CE and PE, What is LTP in stock market, Importance of LTP, What is BTST in Stock Market and Benefits Of BTST. Which can be very useful for you. You may find this words difficult to in listening but it is very easy to understand.
What is CE and PE in stock market
A call option (CE) and a put option (PE) are opposite trades. Let’s understand this in a little more detail when you think the market price is going up(+), So you should buy the call option (CE) to increase the value of your trade. when you think the market price is going down(-), So you should buy the put option (PE) increases the value of your trade.
Short Tips For understand What is CE and PE
Call option (CE) – When the market price increases.
Put option (PE) – When the market price Decreases.
Let’s understand this with a small example
When the price of a call option (CE) of a company is 20rupees, and you feel that the market price will increase, then you should buy call option (CE). As the market price increase, the price of a call option (CE) price is also increase, So you get a opportunity to profit. When the price of a Put Option (PE) of a company is 20rupees, and you feel that the market price will decrease, then you should buy put option (PE). In this you have a chance to profit when the market price goes down.
What is LTP in Stock Market
If you’ve ever bought a stock, you’re aware that stock prices are dynamic, which means they change all the time. Stock prices fluctuate due to changes in buyer and seller demand. Sellers consider the rate at which it will be profitable to sell a stock and set its buying price accordingly, whereas buyers quote a price that will make the deal profitable for them, also known as the bidding price. Once buyers and sellers have determined their rates stock exchanges assist in matching them so that both parties can reach a mutually beneficial price target. The price at which a stock sale is completed is known as the Last traded price, or LTP.
Importance of LTP in Stock Market
In the Stock Market, LTP serves as a base price against which traders can base their ask or bid prices. Identifying and understanding the LTP in stock market for a specific stock is one of the most important pieces of information a trader needs. Many trading websites provide market depth tables that show the history of the most recent prices at which the stock was traded. This information about the various stock LTP can help you establish trends in the price of a stock and the LTP in the stock market so that you can trade accordingly.
What is BTST in Stock Market
In Stock Market BTST stands for “Buy Today Sell Tomorrow”. In general, there are rules of T+2 days settlement in a delivery trade. T+2 stand for if you buy any stock on Monday it gets deposited in your demat account on Wednesday. Which you can’t sell before Wednesday. But in BTST, if you buy any stock Monday, You can sell the stock without credit it to your demat account. it means you can sell also Tuesday.
Benefits Of BTST
1. Anyone can get maximum profit opportunity in short time in BTST.
2. You can sell shares without crediting your demat account.
3. If there is no profit during the day in intraday, it can be converted to BTST and sold on the next day.
4. DP (Depository Participant) charges are free in BTST.
5. use BTST can earn good profit in short time.
In this blog you learned What is LTP in stock market, Importance of LTP, What is BTST in Stock Market and Benefits Of BTST. In which the call option (CE) market becomes profitable as the price increases. and put option (PE) market becomes profitable as the price decrease. Also, LTP (Last Traded Price) shows the last price of any stock. The importance of LTP is also high as it shows a last price because So traders plan to buy and sell stocks. BTST is the process of buying stock today and selling it tomorrow. as well BTST also has many benefits such as the opportunity to make profits in a short period of time and DP free etc.