The NCDEX and MCX are Brand new commodities exchanges that have been set up and these are fully computerised.

The stock brokers are setting up commodity brokerages as well, and trading volumes in commodity futures is widely predicted to rival the volume of derivative transactions (futures and options) on the stock exchanges. What’s more, you can also trade online.

When you buy a Futures, you have to pay just a percentage of the cost instead of the entire amount. Generally in share market terms it is called as the margin.

Let’s say you are buying a Gold Futures contract. The minimum amount of a gold future is 100 gms which is also called as “contract size”. 100 gms of gold will be priced at Rs 72,000.

The margin for gold set by MCX is 3.5%. So you have to pay only Rs 2,520. The low margin means that by paying only a fraction of the price you are buying futures representing a large amount of gold . In this way you bought the Gold Futures contract when it was Rs 72,000 per 100 gms.

Suppose,the very next day, the price of gold rose to Rs 73,000 per 100 gms. Rs 1,000 (Rs 73,000 ? Rs 72,000) will be credited to your account. The next day, the price decreases to Rs 72,500. A deduction of Rs 500 will take place in your account.

But, it is suggested to avoid commodity trading if you are a amateur. A better move would be to initially trade in stock futures and after that going for commodity futures.

The price hike in gold as well as some other precious metals were dramatic during the past decade, over the past 30 years, with gold more than quadrupling in value (from less than $300 per ounce).

While gold and other precious metals seem to have increased in value – but the value has not kept up with the cost of living.

Gold is a precious metal and will always have great value, just like diamonds. Their value cannot be attenuate in the way that paper currencies can be.

It has been seen that people drifting into gold and silver investments during times of economic crisis. There is a hike by more than 500 percent in Gold and silver prices and stocks faced severe losses during the mid seventies. Gold has appeared to hit a bubble during this latest economic downturn.

Long term investment in gold and silver, has not produced any significant benefit. Investors don’t get dividends on these metals and the average prices do not even match the cost of living. But, it is wise to invest in precious metals rather keeping the cash idle. But if you want real profit one should invest on bonds, stocks, and real estate. Buying mutual fund of Gold and silver would be a wise and intelligent investment.

If we give a look at the top banks it tells a different story. Despite the upheaval of bank balance sheets across America, there are many financial institutions still going strong, especially ones that lend money to low-risk borrowers, keep a lid on expenses, and dominate local market share.

Once again, plain vanilla banking have been on the top over the growth-at-any-cost mentality, according to the annual Bank Performance Scorecard. Based on measurement criteria and analysis complied by Sandler O’Neill & Partners LP, a New York-based investment banking firm that specializes in the financial services industry, the Scorecard usually includes repeat performers that generate high ranks in boom times and bust.

Top 10 Global Banking Brands for 2010 listed in ascending order:

Foreign Exchange market is the largest liquid financial market in the world when we consider the turnover it yields daily. The highest turnover ever recorded estimated at around $2 trillion and that also in a single day.

Now a day it is possible to become a Forex trader. Previously it was monopolized by banks, large speculators and big currency dealers now offers small investors and speculators the opportunity to invest.

Trading foreign currencies was a night mare for small-time investors because of the large minimum transaction sizes and stringent financial requirements. Thanks to the latest technology that enables Forex brokers to break down the larger sized inter-bank units and let small investors to invest money in Foreign Exchange business.

One can take it as an excellent alternative to trading in futures and commodities. It is advised that before starting Forex trading you should have some kind of knowledge on it. You can also find help online and e-books are also available which will provide you the necessary tips to be successful in Firex trading.

Naturally, a individual can earn high profits on his initial investment as the prices of shares rise and he can earn dividends as well.  If the market runs in the favor of the individual and he make wise decisions, he will definitely make some profit.

You can find six type of share market risk that you can identify easily. These risks can be identified on various levels from general market risk to very specialized categories.

We know that in reality share market includes total or overall market risk. The type of risk is the broadest type of risk that has far-reaching effects upon the stock market and securities market.  After deep analysis by the experts it has been found that it includes political, economic, interest rate changes, etc.  These changes directly affect the flow of the share market.  You can found global risks on a larger international scale. Global risk factors mainly includes changes to trade and tariff policies or exchange rates.

Tips for shares investment in delivery based trading

Please study following points, carefully, and get best returns in short period of time.
Basically, Delivery based trading can be minimum one week, one month or couple of months. How long to hold your scrip’s/shares will depend on other technical indicators and averages.
How to select best scrip’s
There are thousands of shares/stocks, which one is best for delivery trading and which one will give maximum profit in short period of time. Please have a look following selection criteria points.
Points to remember for fundamental screening,
1. Sector – 50% of stocks rise and fall is directly related to the strengths and
weakness of its industry group.
2. Never lose more than 1-2% of your total amount on any one trade.
3. Promoters holding more than 40% indicate safety for retail investors.

4. FII holding minimum 20 and maximum 25 is safe for retailer, not much volatility.
More FII investment = more volatility.
5. Liquidity – buying and selling of shares minimum 1L/day.

This is the question probably every equity investor would have asked himself a number of times in the past few months.

With the stock market moving to dizzying heights before succumbing to gravity, it’s easy to get nervous or over-excited.

Here’s what we suggest you do when the bulls and bears kick up a lot of dust.
What you must NOT do

1. Don’t panic

The market is volatile. Accept that. It will keep fluctuating. Don’t panic.

If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.

Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don’t sell unnecessarily.

2. Don’t make huge investments

When the market dips, go ahead and buy some stocks. But don’t invest huge amounts. Pick up the shares in stages.

Keep some money aside and zero in on a few companies you believe in.

When the market dips –buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.

Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.

It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.

Pick a few stocks and invest in them gradually.

Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.

3. Don’t chase performance

A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.

Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.

4. Don’t ignore expenses

When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).

With mutual funds, if you have already paid an entry load, then you most probably won’t have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.

If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).

What you MUST do

1. Get rid of the junk

Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.

Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.

2. Diversify

Don’t just buy stocks in one sector. Make sure you are invested in stocks of various sectors.

Also, when you look at your total equity investments, don’t just look at stocks. Look at equity funds as well.

To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.

If you have none of these or very little investment in these, consider a balanced fund or a debt fund.

3. Believe in your investment

Don’t invest in shares based on a tip, no matter who gives it to you.

Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.

Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.

4. Stick to your strategy

If you decided you only want 60% of all your investments in equity, don’t over-exceed that limit because the stock market has been delivering great returns.

The Unaudited results for the Quarter ended December 31, 2008

The Company has posted a net profit after tax of Rs 552.40 million for the quarter ended December 31, 2008 as compared to Rs 839.10 million for the quarter ended December 31, 2007. Total Income has increased from Rs 7404.90 million for the quarter ended December 31, 2007 to Rs 9388.40 million for the quarter ended December 31, 2008.

The Audited results for the Year ended December 31, 2008

The Company has posted a net profit after tax of Rs 2263.20 million for the Year ended December 31, 2008 as compared to Rs 2163.00 million for the Year ended December 31, 2007. Total Income has increased from Rs 20231.50 million for the Year ended December 31, 2007 to Rs 26554.50 million for the Year ended December 31, 2008.