You must have heard about the stock market many times. If you are also thinking of earning money by doing side business or full-time business then the stock market can be a great option for you. So let’s talk understand about the stock market. Before you invest in the stock market, you need to understand some information. Which you will understand in this blog. In the stock market, the terms CE and PE stand for call and put options, respectively. In this post, we’ve gone into great length about What is CE and PE in the stock market, What is LTP in Stock Market, What is BTST in Stock Market And Benefits Of BTST.
What is CE in the stock market?
The Call option is abbreviated as CE. Call European is the correct name for it. These kinds of investment contracts give the option investor the right, but not the responsibility, to buy a share, bond, product, or any other asset at a fixed price within a specified window of time. The call buyer benefits from rises in the value of these underlying assets. To put it simply, purchasing a call option on a security will offer the investor the option to purchase a specific number of shares of the that company at a specific price (known as that of the strike price) prior to a fixed date (known as the expiry date).
When the share price climbs over the strike price, a call option holder will profit from his position and be in a positive position.
What is PE in the stock market?
The abbreviation PE stands for put option. Its official name is Put European. A put option is a contract that grants the option holder the right, but not the obligation, to sell the securities within a set time frame and at a set price (the strike price).
The complete opposite of a call option is a put option. A transaction is never possible without either a buyer or a seller. Investors are also unable to purchase call options without matching put options being available.
When the share price drops below the strike price, the holder of a put option will profit from his pessimistic outlook on the share’s value.
What is LTP in Stock Market
The fluctuating prices of stocks over time are the foundation of the entire stock market concept. The Last Traded Price, or LTP, is what is used to describe the commodities traded on the stock market. The most recent price at which the stock was purchased and/or sold is shown below. Since the LTP of a stock changes throughout the course of its existence, its variations are where its significance may be found.
What is BTST in Stock Market
Buy Today, Sell Tomorrow is referred to as BTST, whereas Sell Today, Buy Tomorrow is referred to as STBT.
You can purchase stocks using BTST on T-day and sell them before they arrive in your Demat account on T+2. The STBT facility enables investors to purchase shares later after initially selling them. The majority of brokers in India provide BTST services, but none of them provide STBT because short sales are prohibited in the Cash Equity category.
These trading options from BTST and STBT enable consumers to profit from stock market price volatility over the short term.
Advantages of BTST in Stock Market
1. In BTST, anyone can quickly and easily obtain the greatest earning opportunity.
2. You can sell shares without your demat account being credited.
3. It can be converted to BTST and sold the following day if there is no profit made during the day in intraday.
4. There are no DP (Depository Participant) fees in BTST.
Conclusion
This blog taught you about LTP in the stock market, its significance, What is BTST in the stock market. whereas as the price rises, the call option (CE) market turns a profit. therefore the market for put options (PE) becomes profitable as prices fall. Additionally, LTP (Last Traded Price) displays the most recent stock price. The practice of purchasing stock today and selling it tomorrow is known as BTST. Additionally, BTST offers a number of advantages like the chance to generate money quickly and DP-free, among others.
