Basic Concepts

Share

A share is a financial security that represents ownership in a publicly listed company. Shareholders are entitled to a portion of the company’s profits and assets.

Security Symbol

A unique identification code assigned to each listed security for trading purposes (e.g., ENGRO, OGDC).

Market

The trading environment where securities are bought and sold. Common market segments include:

• Regular Market
• Futures Market
• IPO Market
• Stock Index Futures
• Cash Settled Futures

Types of Trading Markets

• Regular Market – Standard trading of shares
• Deliverable Futures Contracts – Contracts with physical delivery of shares
• Initial Public Offering (IPO) – First-time issuance of shares to the public
• Stock Index Futures Contracts (SIFC) – Futures based on market indices
• Cash Settled Futures (CSF) – Contracts settled in cash instead of delivery

Order & Trade Terminology

Buy (Bid Price)

The price at which an investor intends to purchase a security.

Buy Volume

Total number of shares an investor intends to buy.

Sell (Ask Price)

The price at which an investor intends to sell a security.

Sell Volume

Total number of shares an investor intends to sell.

Limit Order

An order placed to:

• Buy below market price, or
• Sell above market price
  Ensures price control but not execution guarantee.

Market Order

An order executed immediately at the current market price, ensuring execution but not price certainty.

Stop-Loss Order

An automatic order to limit losses by triggering a buy/sell once a specified price level is reached.

Price & Trading Data

Change (%)

Represents the percentage change in price compared to the previous closing:

• Green → Price increase
• Red → Price decrease

Volume

Total number of shares traded during a session.

Closing Price

The final traded price of a security at market close.

Previous Closing Price

The closing price from the previous trading session.

Average Price

Calculated as:
Total traded value ÷ Total traded volume

High Price

Highest traded price of the security during the session.

Low Price

Lowest traded price of the security during the session.

Trade Time

The exact time when a trade is executed.

Trading System Windows (IBTS)

Market by Price (MBP)

Displays order queues grouped by price levels.

Market by Order (MBO)

Shows individual orders and total volume at each price level.

Confirmation Window

Displays:

• Order status
• Executed quantity
• Remaining shares

Trade Log

Provides a complete record of all executed trades in the account.

Outstanding Orders

Shows all pending/unexecuted orders.

Market Structure (PSX Rules)

Market Lot

Minimum tradable quantity based on price range:

Price Range (PKR)	Market Lot
Up to 100	500 Shares
101 – 500	100 Shares
501 – 1000	50 Shares
Above 1000	20 Shares

Odd Lot Market (ODL)

• Trades below market lot size
• Minimum: 1 share
• Separate market exists for odd-lot trading

Advanced Trading Concepts

Short Selling

Selling a security without owning it, expecting the price to decline and buying it back later at a lower price.

Spot Security

Securities traded to qualify for:

• Cash Dividend
• Bonus Shares
• Rights Issue

Leverage Buying (Margin Trading)

Buying securities using borrowed funds to increase exposure and potential returns (with higher risk).

Portfolio

Portfolio

A collection of investments (shares, securities) held by an investor.