FAQs
Q: What is a simulation?
A:
Simulation is the process of imitating a real phenomenon in a virtual world. This helps users to gain insight of the functioning of the process and systems without risking anything as would be the case in the real world.
Q: What is a financial trading simulation?
A:
A financial trading simulation integrates information technology and finance to create a trading floor where financial instruments like equities (including futures and options), commodities and mutual funds can be traded in a virtual world without risking real money and learning the working of the real market.
Q: How can I place a Buy / Cover Short Order?
A:
In the Trading Pit:
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Select whether you want buy / cover short the instrument.
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Select a company from the company pop-up (Note: If you are passing a cover short order then only those companies will be listed whose shares you have short sold earlier).
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On selection, the company information about that stock will be displayed.
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Type in the number of shares you want to trade.
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Select order type i.e. market order or limit order
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Type in your reason/s for trade and submit the order.
Q: How can I place a Sell / Short Sell Order?
A:
In the Trading Pit:
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Select whether you want sell / short sell the instrument.
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Select a company from the company pop-up (Note: If you are selling then only those companies will be listed whose shares you own).
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On selection, the company information about that stock will be displayed.
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Type in the number of shares you want to trade.
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Select order type i.e. market order or limit order
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Select Stop-loss if you want to restrict your losses (Note: For sell stop-loss, trigger price has to be below best sell price).
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Type in your reason/s for trade and submit the order.
Q: How can I see live quotes?
A:
Click on the Quotes section in the home page. The quotes section allows you look up basic and fundamental information on all the instruments that are traded on the simulator.
Q: How can I get Basic Information on financial markets?
A:
Click on the Research Section in the home page. Members can get theoretical information along with numerical examples on various financial concepts related to stocks, commodities, futures, options, bonds and mutual funds and can also gain a wider understanding of capital markets, company valuations and technical and fundamental analysis. In addition, information on administrative requirements to invest in India and real-time news feeds and links to related websites are also provided.
Q: How can I interact with other members in Tradecracker?
A:
Members can interact with each other and share views and concerns regarding the Indian capital markets by clicking on Forum in the home page.
Q: How can I get the Corporate Actions Information like stock splits, bonus issue, etc taking place?
A:
Click on the Latest Developments section in the home page. The Latest Developments section allows you look up at the various companies that declare dividends, stock splits, bonus share, etc on a timely basis.
Q: How can I see my trade details?
A:
Click on the Transaction History in the Portfolio Section, it allows you to view details of all the transactions passed including the reason for that transaction.
Q: How can I see my Net profit or loss?
A:
Click on the Net Gain Loss Statement in the Portfolio Section, it allows you to view profit/loss made by squaring off an investment.
Q: What is an Intraday Trade?
A:
Intraday trade means a trade with in a day. For Example if you buy one share of Reliance Industries Ltd. at a particular price and Sell the same quantity of the same script on the very same day then it’s called an Intraday Trade.
Q: What is a Limit Order?
A:
If a buyer or a seller intends to trade the script on a particular price then such an order is called limit type order.
Q: What is a Market Order?
A:
An order to buy or sell a financial instrument immediately at the best possible price.
Q: What is a Stop-Loss Order?
A:
An order to restrict losses where a sell order is placed below the best sell price and cover-short-order is placed above the best buy price.
Q: What is a Margin?
A:
A good faith deposit a speculator gives to his broker prior to initiating his first trade.
It’s the amount a futures market participant must deposit into his margin account at the time he places an order to buy or sell a futures contract.
Q: What is a Square-Off?
A:
Purchase and sales are in balance and thus the dealer has no open position.
Q: What is a Close?
A:
Close indicates the closing price for a script on the previous day i.e. it is the last traded price for the script on which the last trade for the script was materialized on the last day of trading.
Q: What is an Open?
A:
Open indicates the first traded price for the script of the day i.e. the trade price at which the first trade for the script was materialized on the day.
Q: What is a Last Traded Price?
A:
The price at which the last transaction took place. It is also called the market price.
Q: What is a DP?
A:
A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor. A DP can offer depository services only after it gets proper registration from SEBI. Banking services can be availed through a branch whereas depository services can be availed through a DP.
Q: How is Tradecracker different from portfolio trackers and other gaming simulation?
A:
Portfolio trackers only track existing investments and do not provide any analysis which would aid the user in developing a greater understanding of the markets. Secondly, they do not generate any reports which would allow the user to test investment strategies. Gaming portals are mostly for fun and to win cash prizes. Additionally, they do not provide any form of analysis or allow multiple portfolio management, and are restricted to stocks. Also, one can only pass mock trades during market hours.
Tradecracker allows members to manage multiple portfolios by passing mock trades based on real time feeds for equities (including futures and options), commodities and mutual funds. Also, reports like transaction history, net gain/loss statement, daily gain/loss statement and financial statement aid members in understanding their decision making and trading skills and the simulated portfolios generated thereof can also be used for employment purposes.
Q: Who should use
www.tradecracker.com
?
A:
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New /Potential Investors with no knowledge of the financial markets can familiarize themselves without taking any risk.
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Management students (Finance/Non Finance) should ask their colleges to make simulation as part of their curriculum as is the norm in western countries.
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Retired people who want to become more active in handling their retirement money and participating in financial markets can do so.
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House-wives can gain financial knowledge about investments; hence, increasing their chances of investing in the real world.
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Brokerage Houses/Financial institutions can use the simulation to test the investment skills of new employees and help them with the training process; thus, reducing training and attrition costs. Also, they can test new and Hybrid investment strategies without risking money.
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NRI/PIO/Foreign Investors can use the simulation to understand the various features of the different financial instruments offered and access administrative information on eligibility requirement, depository participants etc.
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Active Investors who wants to diversify their portfolios, experiment with new financial instruments and test investment strategies should use the simulation as it will impart a greater understanding of their requirements without risking real money.
Q: What calculations must one track or keep into account?
A:
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Cash (Rs.):
Balance in the trading account at that point of time. It is affected by brokerage, investments, interest, marked to market and other functions.
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Margin:
Amount blocked for investment in Futures. It is calculated as a percentage of the traded value of the futures transaction.
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Reserved Funds:
Amount blocked for investment in Mutual Funds and Market Orders passed after market timings.
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Value of Investments:
Sum of the current value of all investments except futures.
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Buying Power:
Amount that can be used to further invest. It equals cash – margin – reserved funds
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Portfolio Value:
Value of portfolio at that point of time. It equals cash – margin – reserved funds + Value of Investments.
Q: What are the differences between real-life trading and
www.tradecracker.com
?
A:
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No Quantity Matching as this is a simulation.
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Real-live trading floors look different from the trading pit of the simulation.
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For stocks and commodities there is no delivery as this is a simulation.
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For commodities, members do not have to give intention of delivery few days before expiry of contract because this is a simulation; thus, no penalty is also charged on default.
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For commodities, the simulation allows members to take fresh positions after date of delivery intention which does not happen in real life.
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Brokerage charges are average for the industry and can vary from broker to broker.
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No exercising of options as this is a simulation.
Q: How is Tradecracker helpful to individuals?
A:
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View detailed strategic information on all listed companies, mutual funds, commodities etc.
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Access real-time market news, company news and mutual funds news
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Interact with like-minded people and create forums
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Access our extensive research section
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View equity, commodity and mutual fund reports created by various brokerage houses
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Choose how much mock money they want to start their account with
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Buy and sell equities using mock money
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Buy, sell, short-sell and cover-short commodities, stock & index futures using mock money
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Buy and sell stock & index options using mock money
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Invest in Mutual funds based on actual NAV using mock money
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Pass Market Orders, Limit Orders and Stop-loss Orders
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View Transaction History, Pending Transactions, Daily Gain/Loss Statement, Net Gain/Loss Statement and Financial Statement
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Maintain multiple portfolios based on risk, asset class, and sector or on any other basis
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Live Portfolio Updates
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Track favorite stocks, futures, options, commodities and mutual funds
You can get a realistic experience of investing and trading in the financial markets with your Tradecracker Trading Accounts because all Investment Decisions made by you are based on actual Price Information coming directly from the Exchanges.