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Equity and Commodity

                          Finally FED increases the rate by 25 basis point as expected from their employment and inflation data.
                         Now i move towards today's post i.e equity and Commodity.  Equity is the trading of virtual or computerised things, such as shares or stocks while commodity is the trading of physical or consumable things, such as bullions (gold and silver), base metal(copper , aluminium, zinc, nickel etc.), Plantation (tea, Coffee, rubber), spices, cereals, lentils, crude oil, natural gas etc.
                         Trading in Equity is done by three ways-
                       1.  Intraday (day trading)
                       2.  Delivery (cash market)
                       3.  Future and options (F & O)

1. Intraday
                       It is nothing but the day trading, valid for one day only. You can purchase stocks of 1-10 times of margin , depends upon the rating of the company ( i.e. rating from A,B,C,D,E,F) .  
E.g. -
            If you have INR 10,000 then you may purchase worth   INR 10,000 - INR 1,00,000 of shares ( depends on ratings of companies) , valid for day only.

2. Delivery      
                       It is nothing but trading of shares for short-term (>1 day to 1 year <) and long-term (> 1 year ) .
E.g. -
           If you have INR 10,000 then you can purchase only  worth INR 10,000 of shares. It is dissimilar from intraday.

3. Futures and Options  
                        It is the virtual contract of shares between buyer and seller. Contract do not take place physically but traders promise each other for fulfillment .      

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