Learn about the terms that used in moneycontrol

1. Volume :

It's a number of total share which was traded in a specific time period or day.

For example, there is a company whose name was XYZ. From 9:15 to 10:00 am 1000 share of XYZ company was traded, between 0:00 to 11:00 am 500 share of XYZ company trade and between 11:00 am to 3:30 pm 2500 share of XYZ company traded.

Total volume = 1000 + 500 + 2500 = 4000

So, the total volume of XYZ company is 4000.

2. Bid Price :

The bid price is the highest price that an investor is willing to pay for the security.

For example, if an investor wanted to sell a stock, he or she would need to determine how much someone is willing to pay for it. This can be done by looking at the bid price. It represents the highest price that someone is willing to pay for the stock.

3. Offer price :

The offer price is the minimum rate in the market at which sellers are willing to sell any stock or the other security which they are currently holding.

In the stock, market all transactions are completed on the basis of time and price. That's why when the bid price and offer price matched then order get executed.

4. VWAP :

The Volume Weighted Average Price (VWAP) is the average price of a stock weighted by the total trading volume. The VWAP is used to calculate the average price of a stock over a period of time.

Volume Weighted Average Price = total traded value / total volume

Let's understand it with an example.

There is XYZ company which shares are traded at 3 different prices.

1. 1st trade = No. of share * share price

= 100 * 50 = 5000

2. 2nd trade = No. of share * share price

= 200 * 60 = 12000

3. 3rd trade = No. of share * share price

= 200 * 40 = 8000

So, total traded value = 5000 + 12000 + 8000 = 25000

And, total volume = 100 + 200 + 200 = 500

So, VWAP = total traded value / total volume

= 25000 / 500

= 50

So, VWAP is 50 rupees.

5. Today's Low / High :

Today's low means that today's lowest price of that stock.
Today's high means that today's highest price of that stock.

6. 52 Week Low / High :

52 week low means that the lowest price of that stock in 1 year.
52 week high means that the highest price of that stock in 1 year.

7. L/U price band :

Generally, price band is used to control extreme volatility of the stock price. It means that keep price movement in a specific limit. Price different for different stock's like 2%, 5%, 10%, 20%.

Learn about the terms that used in moneycontrol - 1

For example, the lower price band for infosys in the above image is 602.60, and the upper band for infosys is 736.5. It simply means that the price can move between 602.6 to 736.5. If the price goes down from 602.6 or increases above 736.5 then trading is closed for that day.

8. Previous close :

The price at which the stock closed yesterday or on the last trading day is called the previous close.

9. Open price :

The price at which the stock opened today is called the open price.

If you have any queries about the stock market or this post. Then comment us from below and we will help you.

Thank You.

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