00:02What is CS?
00:04How does the new closing options session of NSE work?
00:07Advantages, Disadvantages and the Complete Truth
00:09In this video, we will explain
00:10Have you seen it after 3:30?
00:13Suddenly the closing price of an asset changes?
00:16Did the exchange change the price?
00:18Or did Phi Poi make a big mistake?
00:20No, actually NSE has implemented a new system.
00:25Whose name is CAS i.e. closing option session
00:29And if you trade in the stock market
00:32So it is very important for you to understand this system.
00:36Hello friends, welcome to no start finance
00:39Today we will understand in very simple language what CS is.
00:43How it works, how the closing price is determined
00:47What are its advantages and disadvantages?
00:50And will this have any impact on retail traders?
00:54So please watch the video till the end.
00:57How was the closing price determined earlier?
01:00Earlier it was 3.30 pm, that is, 3.30 pm which was the last traded price.
01:06Or according to the closing mechanism, the same would become the closing price.
01:10But the problem was that in the last few seconds of the day
01:16If a large order comes in, the closing price could change.
01:22And some people tried to take undue advantage of this.
01:27What is CS? Now NAC has implemented closing auction session i.e. CS.
01:35In this, buy and sell orders are billed for some time just after the market closes.
01:42The exchange then finds a price that matches the maximum number of buy and sell orders.
01:50That price is considered the official closing price.
01:53The simplest example is a fruit market.
01:57100 people want to buy save and someone wants to pay 98
02:02Some want to sell it for 99, some for 100 and some even for 101.
02:10Now the shopkeeper chooses such a price that can attract maximum number of people.
02:16That is, CS ensures that maximum buyers and maximum sellers meet at the same price.
02:25The exchange aggregates all orders and then sets the price at which the largest quantity can be traded.
02:33makes the closing price
02:35Now let us understand what are the advantages of this. The first advantage is that the closing price is more fair. The second advantage is the last minute price.
02:43Manipulation is reduced
02:44Third advantage: Mutual funds, index funds, ETFs and institutional investors get a fair closing price. Fourth advantage: market
02:55shows real demand and real supply
02:58Now let us understand what are its disadvantages. Now every system has some advantages and some limitations too.
03:05Is
03:06Retail traders may be initially confused.
03:10Secondly, the price shown after 3 pm may not necessarily be the final closing price.
03:17Third, if you analyze by looking at the closing price, then you will now need to understand CS as well.
03:28Fourth, some traders who did last minute scalping may have their strategy affected.
03:36Will this cause any loss to the retail trader? In simple words, it is absolutely not.
03:42If you are a long term investor or a disciplined trader then there is no need to worry.
03:52You just need to understand how the closing price is determined.
03:58Does this change your trading strategy or not?
04:01CS does not change the market direction, it only changes the method of determining the closing price.
04:08Therefore, risk management, price action and trading discipline are just as important today.
04:15The most important thing to remember is that there is no easy way to make CS profits.
04:21This is simply a mechanism of the exchange to make the closing price more fair and transparent.
04:30If you want to see more practical videos on CS
04:37So please write CS in the comment.
04:40If you want me to do CS talks on this with live example
04:47So please tell us that too in the comments.
04:51Like, share, follow and subscribe to No Chart Finance right now.
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