RULES & GUIDELINES (5.2)

PSX Related Trading Rules/Standard

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Shariah Compliant Stocks

What is the criteria for Shariah Compliant Scrip?

There are certain criteria to be met for being Shariah Compliant e.g. %age of capital in liquidity, infrastructure, investment model, commodity type etc. Any company that do not meet the above requirements will be listed under Non-shariah, that's why PSX review the list on repetitive time frame e.g. CEPB was under non-shariah in the old list issued until mid of Y2020, then the new list published by PSX late in December 2020 and it is included under Shariah compliant.

What is Book Closure and Ex-date for a scrip to avail dividend?

Current PSX rule for Ex Date is "BC - 2" which means that book closure start date minus 2 working days will become the Ex-date which further means that book closure start date minus 3 working days will become last date of spot.

* You can download Audio Clip by Mr Muhammad Ahsan (Stock Villa) in mp3 format *

Book Closure

Order Types used in PSX

LIMIT: Limit orders set the maximum or minimum price at which you are willing to complete the transaction, whether it be a buy or sell.

STOP LOSS: A stop-loss order is an order placed with an Exchange to buy or sell a specific stock once the stock reaches a certain price. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

LEVERAGE: Leverage means using capital borrowed from a broker when opening a position.

MKT or MARKET: Market orders offer a greater likelihood that an order will go through, but there are no guarantees, as orders are subject to availability.

SHORT SELL: A short sell is a transaction in which the seller does not actually own the stock that is being sold but borrows it from the broker-dealer through which they are placing the sell order.

MIT -A market-if-touched (MIT) order is a conditional order that becomes a market order when a security reaches a specified price.

* You can download Audio Clip by Mr Muhammad Khalil Ajmal in mp3 format *

Order Types

What is FIPI-LIPI-Settlement Ratio & Future Market

FIPI: Foreign Investors Portfolio Investment
LIPI: Local Investors Portfolio Investment
Future Market: A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. Futures are exchange-traded derivatives contracts that lock in future delivery of a commodity or security at a price set today.

* You can download Audio Clip by Mr Jawad Yousuf in mp3 format *

FIPI-LIPI

Settlement Ratio Concept Explained

Settlement Ratio: Settlement Ratio means how shares traded and how much shares bought and hold by investors and traders on a specific day. more settlement ratio indicate investor's and trader's interest and confidence in a particular stocks and less settlement ratio indicate lack of confidence and interest.