Broker
A SEBI-registered intermediary that routes your buy and sell orders to the exchange.
Reference
Glossary
Short, plain definitions for the core terms used across StockGyan articles. These are the building-block words you will meet again and again while reading about the Indian market.
BSE
The Bombay Stock Exchange, one of Asia's oldest stock exchanges.
CDSL
The Central Depository Services Limited, a depository that maintains Demat holdings.
Commodity
A basic traded good such as gold, crude oil or agricultural produce.
Contract Note
A broker document confirming the details, price and charges of your executed trades.
Debt
Borrowed money that must be repaid, often with interest; includes bonds and loans.
Demat Account
An electronic account that holds securities such as shares and ETFs in digital form.
Derivatives
Contracts such as futures and options whose value is derived from an underlying asset.
DII
A Domestic Institutional Investor such as a mutual fund, insurer or bank investing in Indian markets.
Disclosure
Information a company or intermediary must publish so investors can make informed decisions.
Equity
Ownership in a company, represented by its shares; also called stock.
Exchange
A regulated marketplace such as NSE, BSE or MCX where securities and contracts are traded.
FII
A Foreign Institutional Investor that invests in Indian securities markets under applicable rules.
Futures
A contract to buy or sell an asset at a set price on a future date.
IPO
An Initial Public Offering, the first sale of a company's shares to the public.
KYC
Know Your Customer, the identity verification process required to open and use market accounts.
Leverage
Using borrowed funds or margin to take a larger position than your own capital allows.
Liquidity
How easily an asset can be bought or sold without sharply moving its price.
Margin
The funds or collateral a broker requires to take and hold a leveraged position.
MCX
The Multi Commodity Exchange of India, a major venue for commodity derivatives.
NSDL
The National Securities Depository Limited, a depository that holds securities in electronic form.
NSE
The National Stock Exchange of India, one of India's leading stock exchanges.
Options
A contract giving the right, not the obligation, to buy or sell an asset at a set price.
Order
An instruction to a broker to buy or sell a security at the market or a set price.
PAN
The Permanent Account Number, a tax identity used across Indian financial accounts.
RBI
The Reserve Bank of India, the central bank that manages monetary policy and currency.
Risk
The chance that an investment's actual outcome differs from what you expected, including loss.
SEBI
The Securities and Exchange Board of India, the regulator that supervises India's securities markets.
Settlement
The process where securities and money are exchanged to complete a trade.
Share / Stock
A unit of ownership in a company that can be bought and sold on an exchange.
Stop Loss
A pre-set order that exits a position to limit loss if the price moves against you.
STT
The Securities Transaction Tax levied on trades of listed securities in India.
Volatility
How much and how quickly a price moves up and down over a period.