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Report on lecture as on 23rd November

1. Demonstration on online trading and mobile trading:

The lecture was jointly delivered by Mr.Vinod and Mr.Vipin. They


have given a brief demonstration about the online trading, which we have
practically seen in the trading unit of Geojit PNB Paribas, Palarivattom.
Geojit were the pioneers of online trading in the year 2000. The following
aspects were covered in his talk:

 Four platforms provided by Geojit in online trading:

• FLIP (Financial Investment Platform) Platinum: It is a software


installed in computer

• FLIP Gold: it is a web based application

• FLIP Lite: it is a web based application for low band width of


Internet connection

• Flip Me: It is mobile trading

 Disclosed Quantity: This is an option available with online trading


where in investors have the right to keep 10% of the total quantity
size (Buy/sell) undisclosed in order to prevent wide fluctuations in
the market.

 BTST (Buy today sell tomorrow)

 Limit order

 Intraday trading

 Geojit has an association with the following banks for faster


transactions: HDFC, AXIS bank, ICICI, Federal Bank, IDBI

 To increase the buying power of the investors Geojit provide fund


transfer and delivery selling
 LAS (Loan Against Shares): Geojit provides 50% of the net worth of
the shares which an investors holds at an interest of 18%.

 Power of Attorney (POA): It is given to Geojit by the investors only to


settle the trade.

 PMS (Portfolio Management System): Geojit provides portfolio


management services where in the research wing of Geojit manages
the portfolio for its clients. The minimum amount to be invested in
PMS is Rs.500000 in case of residents and Rs.2500000 in case of
NRIs. If the return on the portfolio is more than 12% then a 20%
performance fees is charged else 3% flat rate for every quarter.

 Geojit accepts following fund transfer methods:

• Online fund transfer

• NEFT/RTGS

• Cheques

2. Talk on Derivatives:

The lecture was delivered by Mr. Peter. He gave a brief idea about
derivatives, forwards, futures, options and swaps. Initial talk was on
differentiation between futures/options and forwards. H e has briefed
about the advantages in investing through options as it includes lower
risks. He has also described the methodology to lower the risk by
managing the portfolio in terms of long position in cash and short position
in futures.
The lecture also covered the topics like

• Arbitrage: It is taking an advantage of price variations in two


different markets.

• Hedging: It is the transaction initiated to minimise the loss

• Straddle: It is buy a call and put option at the same strike price

• Strangle: It is buy a call and put option at different strike prices

3. Technical Analysis:

The lecture was delivered by Mr. Sajish. He a brief idea about the
different types of charts involved such as

• Bar charts

• Line charts

• Candlesticks

4. Talk and demo on commodities trading:

The lecture was delivered by Mr. Prasad Babu. He gave us a brief


idea about the commodities which are traded in the market in order to
facilitate both the wholesaler/retailer and the farmer. He has given lecture
about the importance of commodity market especially in India where the
19% of GDP is supported by agriculture. Major economic functions of
commodities future market is price discovery and price risk management.
He gave an idea on difference between speculation and gambling. The
commodity market has grown at 41.89% in 2009 with comparison to
2008. FMC (Forward market Commission) is the regulatory frame work for
the commodity exchange in India according to Forward Contracts
Regulation Act 1952. There are 21 regional exchanges and 5 National
exchanges in India.

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