Speculation;
speculation means buying and selling of commodities at one time with the hope of making profit by selling or buying at another time usually in the same market. The person who does so is called speculator.
Bull;
a speculator who buys goods or securities with the hope that price will raise in future and he would sell it at higher price earning a large profit is called bull.
3 Staunch bull;
it is quite natural that sometimes the price may fall instead of having any jump in the market. The bull operator who does not this state of affaire nor is prepared to sell at fewer prices but still expects rise in price is known as staunch bull.
4 Trapped bull;
when the purchasers of a commodity come to know that the bull has overbought a commodity, they suspend their purchases in order to compel the bull to charge fewer prices. In this way the bull is called trapped.
5 Bullish;
when the market tendency is influenced by optimist purchasers expecting rise in prices, the conditions of market is known as bullish.
Bull account;
when speculative purchases exceed the speculative sales of a commodity, there occurs bulls account. It is called overbought position.
7 Bear;
a speculator who sells in the hope of fall in prices and buys more cheaply in future when the price has already fallen, is called bear. He sells now when the prices are high and buys in future when the prices go down.
Bearish;
when the market tendency at any time for a commodity is influenced by persons expecting fall in price, the condition of market is called bearish.
Bear account;
when there is oversold position of a certain commodity due to more bear transactions than the bull operation, it is called bear account.
1 Call option;
when the dealer has got the right to purchase a commodity at a particular price in a given period, it is called call option. For example a person is authorized to purchase cement at Rs. 250/_ per bag from 1st January 2007 to 30th June 2007.
1 Put option;
when a dealer has got the right to sell a commodity at a given price for a particular period, it is called put option.
1 Double option;
some dealers get a right to buy and sell a certain quantity of commodity at a fixed price for a particular period, this right is called double option and put option, that is why it is called double options.
Off take;
off take refers to the total purchases made in certain period. It is calculated on the basis of average purchases made both on the spot and forward delivery.
1 Turn over;
the total amount of business done on any day or during a given period in the market is known as turnover.
Rigging;
some speculators try to control the market by fictitious transactions so as to regulate it in their favor this organization is called rigging.
1 Glut;
glut means an oversupply of any commodity for sale in the market at a reasonable price.
1 Market price;
it is the price actually given in the market. It is determined at the meeting point of demand and supply for a commodity.
Market value;
the market value is an average value of a commodity in a given short term market by observing long period.
Haggling;
haggling is the process of agreement in order to fix rates by making offers and counter offers. Nowadays this system is in practice in every market.
Dumping;
dumping refers to any kind of severe competition in the sale of imported goods at the price much lower than the current market price. Having the desire to capture foreign market sometimes certain countries sell their goods below the cost of production and thus acquire monopolistic control of the market.
2 Boom;
the period of high prices and heavy business is called boom.
Slump;
slump is the period of falling prices and small business.
Arrival;
the market usually starts its transactions with the stock in hand, that is stock brought forward from the previous day. During the course of business period, fresh stock is brought to the market, which is technically known as arrival. This term does not show the total available supply but it is only the additional supply to total stock of commodity in the market.
2 Underwriting;
the guarantee to sell share in the market and prescribe fresh loans from the public is called underwriting. The broker or commission agent who does so is called underwriter.
Street price;
the price quoted out of the Shops, markets at the close of exchange is called street price. This price varies from place to place.
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