Day Trading - How It Works

Day trading is  defined in simple terms as the buying and selling of a security in a single trading day.

When you purchase a specific number of shares at the start of trading, you will have sold your position by the end of the trading day, and then start all over again the following morning.

Day trading is done by using trading strategies to take advantage of the small price movements in high liquid stocks or currencies.

It is interesting to note that in a country with a population of over 1.2 billion, there exists millions of active trading accounts in India.

As we find traders that continue to make millions of rupees each year, day trading in India is on the rise. 

In order to join the increasing numbers of switched on traders, you need an accurate and comprehensive resource to turn to and one needs to follow an expert guide to making money on day trading in India.

Beginners who are still learning the basics should read tutorials and watch how-to videos to get practical trading tips. 

Experienced day traders can explore more advanced topics such as automated trading and how to make a living on the financial markets.

When you want to trade, you use a broker who will execute the trade on the market and it is important to note that the broker you choose is an important investment decision.

India currently has around 70 brokers to choose between and there are numerous top global brokers you can turn to. 

You will find that due to the high number of trades that take place on any given day, speed of execution should play a factor.

Another important factor is the lower the fees and commission rates, the more profit you take home, and many will reduce their commission the more you trade.

One needs to make sure that the broker is regulated as they are legally obliged to protect your financial interests.

Whatever maybe the day trading strategy that you follow, you will need assistance at some point, so look for online brokers that have quick response times and strong customer support.

As a day trader you have to demand competitive spreads so find brokers with profitable spreads in order to get the money in the bank.

Reward Points - How They Work

In general, you earn a certain number or percentage of rewards for every dollar you charge on your credit card. Some cards reward you more for spending in certain areas or may only give you rewards on certain purchases

eward points are an incentive for customers to use their cards as much as they can. Banks gain from the interchange fee from merchant outlets, which in turn gain from higher sales. The user of a card, especially a credit card, benefits only if he uses it judiciously.

Do you know why reward points earned on credit/debit card transactionsexpire if not redeemed on time? Is it a significant loss? Why would a card company deduct the reward points if not redeemed? And, of course, why do card companies give reward points for using their cards in the first place?

When a bank offers you a credit/debit card, it talks at length about reward points. It is difficult to make sense of such talk, but for credit card companies, reward/loyalty programmes are an important element of their sales pitch.

Are reward points useful for card holders? Why are they important for card companies? The answer lies in the economics of reward points that we try to explain here.

Every time you use your credit/debit card for a transaction, the card company earns an 'interchange' fee from the merchant outlet. It can vary from 1% to 2.5%. The outlet can negotiate a lower fee if its volumes are high.

Apart from the 'interchange' fee, the card company makes money from the annual fee it charges from card holders and interest earned on rolling over unpaid bills. They share a part of earnings (mostly from interchange fee) with the card holder in the form of reward points to encourage him/her to use it more frequently.