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Stock Market Terminology, Top 10 stock market terms for every Investor

Stock Market Terminology

Stock Market Terminology: Some important terms about share market that beginner Investor should know. You can also get 'Indian stock market terminology pdf'. in this post, you are going to know about Portfolio, IPO, Stop-loss, CNC, Intraday trading, trigger price, GMP (Grey market premium), Stock Market index, and many more.

Most Used words in stock market

 Indian stock market terminology


    A portfolio is a list of where and how much an investor has invested. No investor keeps all his money in one place, he invests in different places to keep his money safe. And wherever the investment has been made, keeping a list of all the investments that have been made is called Portfolio.

    By creating a portfolio, it is known at once how much we have invested and where. And the investment we make is in profit or loss. By creating a portfolio, you can track all your investments from one place.


    Suppose any stock you bought at ₹ 100 per share and it started trading below ₹ 100, then you will obviously start making losses. To stop this loss, you place a stop-loss order like you bought ₹ 100 per share. If you have a stop-loss order, you can place an order of around ₹ 95 as per your capacity and in this order, your shares will not be sold until your stock comes to ₹ 95 and as soon as your share is below ₹ 100 to 95 ₹ 80. 

    If you move to ₹ 75, you will be sold for ₹ 95 due to stop-loss order and your loss will be fixed at ₹ 5 per share while the current share price has reached ₹ 80 per share and this is where the condition is sold. 

    But it will also be applicable if you sell any stock at ₹ 100 and that share reaches Rs. 101/102, then you will start making losses. Suppose you stop at ₹ 105. - If you lion above ₹ 105, then you will be booked a stop loss of share at ₹ 5. Now, going from there to 110/115, your loss book at ₹ 5 according to the share Will be done.

    What is Square of Order

    Square of order means that any stock you have bought will go on sell and if sold, it will go on buy, this means square of order. Suppose SBI shares in your Buy As soon as you square him off, the order will be ready for sale and if you square off, then the order will be ready for buy.

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    CNC (cash and Carry)

    Cash and carry order (Cash and carry order) according to the amount of money in your wallet, you will get shares and you can keep those shares on hold, you can sell them even after 1 year and 2 years.

    Intraday Trading

    Intraday trading means the purchase of shares bought and sold for just 1 day - horse trading means intraday trading after the market opens in the morning and 15 minutes before the market closes in the evening. 

    If you have to sell and if you have sold then you will have to buy in intraday trading on the same day you will have to buy and sell the shares. You cannot keep those shares on hold. If you did not square before the closing of the market, then the computer automatically Will placed a square off order.

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    Trigger price 

    Trigger price is a support order of stop-loss if you have bought a tiger of ₹ 100 and it starts trading below the purchase price then you will order stop loss to take less loss that the lion at more than 15. If I cannot take a loss, then I will put a stop loss of ₹ 95. While applying the stop loss, another option also has the option of trigger price. 

    If you put ₹ 95 in the stop loss, then you have to put a rate above ₹ 95 in the trigger price like Rs. 95. Will put a trigger price of 50 paise.


    The full form of LTP is Last Traded Price. It basically refers to the price of the most recently resolved transaction. In other words, it is the price of the last trade that took place in a specific stock or shares.

    It also means the final point of agreement between the buyer and seller on the value of the stock.

    GMP (Grey Market Premium)

    company shares are traded informally by traders. This happens before the issue of shares in an IPO by the corporate.

    Since this is often an informal market, there are no rules and regulations. The Securities and Exchange Board of India (SEBI) is not involved in these deals. Even the regulator does not support it.


    The full form of IPO is Initial Public Offering. First of all, companies get their shares listed on the stock exchange and bring IPO (Initial Public Offer) and the shares themselves are the public issues at the price fixed by themselves.

    Once the IPO is completed, the shares come into the market and are being bought and sold amongst themselves through stock exchanges and investments through brokers.

    Stock Market Index

    Stock Market Index - An index is an indicator of a stock market designed as a statistical measure of the performance of the entire market or a segment of the market based on a sample of securities taken from the market. Thus, an index is a means of evaluating the overall performance of a market or a segment of the market. 

    An index is a measure of overall market volatility. In addition to being a general market indicator, the index is a benchmark used to evaluate the performance of individual portfolios. Professional money managers will always try to outperform the market, that is, they will always try to outperform the index. For example, if the value of the portfolio increases by 10% and the index rises only 5%, it means that the portfolio is outperforming the market.

    We have 2 famous indices here, namely-

    BSE Sensitive (BSE Sensex) and Nifty 50 (Nifty).

    Apart from these, there are many other indices like BSE Midcap, BSE Smallcap, Nifty 100, Nifty Smallcap 50, etc.

    Topics about the stock market that every investor should know.

     What is Short Selling?
    ➤ What is Multibagger Stock?
    ➤ What is Blue Chip Stock?
    ➤ What is Penny Stock?
     Share Market Terms (Portfolio, GMP, IPO, Stop Loss, etc).
     What are Futures & Options?
    ➤ Stock Market Index And Exchanges.
    ➤ Value investing Vs Growth investing. 

    We hope you like this article very much about stock market terms. Feedback is kindly invited, please post a comment. 

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