Indian Trading League

Check out the meaning of hundreds of trading terms in our trading glossary.

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A (credit rating)

An A credit rating is given to borrowers that are considered to have a strong ability to meet their financial commitments. However, they might be more affected by changes in circumstances or economic conditions than borrowers with higher ratings.

AA (credit rating)

An AA credit rating signals a very strong capacity to meet financial commitments. It's one notch below the highest AAA rating, showing high creditworthiness. While highly reliable, borrowers with an AA rating face slightly more risk than those rated AAA, especially in challenging economic conditions.Learn more

AAA (credit rating)

An AAA credit rating represents the highest level of creditworthiness. It indicates an exceptional ability to meet financial commitments, making it the safest investment grade. Borrowers with AAA ratings are considered to have the strongest capacity to withstand economic challenges and maintain their obligations.

Abnormal return

An abnormal return is the difference between an investment's expected return and the actual return. It indicates how much better or worse the investment did compared to what was anticipated, revealing its performance relative to market expectations.

Absolute return funds

Absolute return funds are investment funds designed to make money in all market conditions. They focus on returns rather than trying to outperform the market, and employ a range of strategies - like short selling - in an aim to profit regardless of market direction.

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Accelerated monitoring fees

Accelerated monitoring fees are charges a company pays in advance to private equity advisors for ongoing services, typically triggered when the company is sold or goes public. This upfront payment covers future services that were supposed to be provided over several years.

Accelerated Return Note

An accelerated return note is a financial product that offers potentially higher returns than a specific asset's performance. If the asset does well, investors get increased gains quickly. However, there's a risk of losing money if the asset performs poorly, making it a high-reward but risky investment.

Accounting Currency

Accounting currency is the currency that a company uses in its bookkeeping. While accounting currency may differ from operational currency - i.e. the currency in which a company transacts day-to-day business - it is the main currency for recording transactions and reporting results.

Accounting Insolvency

Accounting insolvency occurs when a company's liabilities exceed its assets on the balance sheet, indicating it owes more than it owns. It's a financial condition in which the company can't cover its debts with its current assets, suggesting potential financial trouble.

Accounting liquidity

Accounting liquidity measures how quickly a company can pay off its short-term debts using available assets. High liquidity means that a company can easily meet its financial obligations, indicating good financial health. Accounting liquidity is crucial for managing cash flow and ensuring operational stability.

Accounting Rate of Return

The accounting rate of return calculates the potential profitability of investments based on their expected net income relative to the initial investment cost and serves to evaluate the financial viability of new projects.

Accounting Ratio

An accounting ratio is a financial metric derived from two or more numerical values found in a company's financial statements. It's used to assess a firm's financial health, operational efficiency, and profitability.

Accretive

Accretive refers to any process or transaction, such as a merger or acquisition, that positively influences the value or earnings of a company or financial asset.

Accretive acquisition

An accretive acquisition is when a company purchases another company, and the resulting merger increases the acquiring company's earnings per share, enhancing shareholder value.

Accrual accounting

Accrual accounting is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur. This approach can help provide a more accurate picture of a company’s financial position.

Accrue

In finance, to accrue means to accumulate or receive payments or benefits over time, especially with reference to accruing interest or expenses that are recognised in the accounts before being paid.

Acid-test ratio

The acid test ratio, also known as the quick ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory, and is recognised as a stringent indicator of financial stability.

Acquisition structure

Acquisition structure refers to the financial and legal framework of a deal when a company acquisition happens. This includes the arrangement of payments, asset transfers, and integration strategies.

Active Investing

Active investing involves the frequent buying and selling of assets to exploit short-term market movements in an attempt to profit.

Active Order

An active order is a trading order that has been placed but not yet been executed, and remains active until either being filled or cancelled. An active order could be a limit order, stop order or conditional order, and can help traders manage positions by specifying the price they are willing to pay or accept for an asset.Learn more

Active trading

Active trading refers to frequent buying and selling of assets in an attempt to profit from short-term market movements, rather than long-term 'buy and hold' type investments.

Activist shareholder

An activist shareholder is someone who purchases a large quantity of a company's shares in an attempt to effect significant change within the company, often seeking to improve financial returns and shareholder value.

Adams Express Company

The Adams Express Company definition is of a diversified equity fund that operates as a closed-end fund, investing primarily in US shares. The company was originally established as a freight and cargo business.

Adjusted Present Value (APV)

Adjusted present value (APV) is a valuation method that separates the value of an investment project from the value of its financing side effects, like tax shields, calculating net present value using the unlevered cost of capital.

Advanced Computerized Execution System

The Advanced Computerised Execution System refers to an electronic platform used in trading that uses advanced algorithms and automation to execute large volumes of securities transactions.

AEX index

The AEX Index is a major stock market index tracking the performance of the top stocks traded on the Amsterdam Exchange. It is often seen as a proxy for the general health of the Dutch stock market and overall economy.

After-Hours Trading (AHT)

After hours trading refers to the buying and selling of assets outside the standard trading hours of major exchanges such as the New York Stock Exchange. It might be used in an attempt to capitalise on price movements following key news events, to hedge, or to avoid price gapping. After hours trading can potentially be more volatile, and therefore risky.

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Agency security

An agency security is a form of debt security issued or guaranteed by US government-sponsored enterprises or federal agencies, excluding US Treasury securities, often used for funding specific governmental activities.

Agricultural Bank of China

The Agricultural Bank of China is a major Chinese bank that provides financial services to agricultural, rural, and farmer communities, with the aim of enhancing China's agricultural economy and rural development.

Alaska Permanent Fund Dividend

The Alaska Permanent Fund Dividend is an annual payment made to Alaska residents that meets eligibility criteria, funded by the profits from the state's oil revenue to distribute wealth from natural resources.

Alberta Heritage Savings Trust Fund

The Alberta Heritage Savings Trust Fund is a sovereign wealth fund established by the Alberta government to manage and invest the surplus revenues from the province's oil and gas resources for future generations.

Alerts

In finance, alerts are notifications sent to traders or investors about significant events or changes in their portfolio or market conditions, helping them make timely decisions based on the latest information.

Algorithmic trading

Algorithmic trading is a method of executing trades using computer algorithms based on predefined criteria, without human intervention. It capitalises on speed and precision, handling vast amounts of data and executing orders quickly in an attempt to exploit market opportunities across asset classes like shares and forex.Learn more

All in method

The all-in method in finance considers all possible costs and revenues in the analysis or evaluation of a project to ensure all factors are accounted for in decision-making.

Alpha generation platform

An alpha generation platform in finance refers to tools or systems used by traders and investment managers to identify potential investment opportunities that are expected to yield market-beating returns.

Altcoins

Altcoins are cryptocurrencies that propose improvements or differing features and technologies to bitcoin, aiming to address perceived limitations of the most prominent coin.

Alternative asset

An alternative asset is an investment in non-traditional categories such as real estate, commodities, and hedge funds, and can be used to diversify investment portfolios beyond conventional shares.

Alternative display facility

The Alternative Display Facility is an electronic system used in trading to provide exchange services like quote dissemination and trade reporting without providing a full trading venue.

Alternative Investment Fund Managers (AIFM) Directive 2011

AIFM stands for Alternative Investment Fund Managers, referring to managers who handle funds investing in assets including real estate, hedge funds, and private equity.

Alternative public offering

An alternative public offering (APO) is a method for private companies to become publicly traded by merging with an existing public shell company, an alternative to traditional initial public offerings.

Alternative trading system

Alternative Trading Systems (ATS) are trading venues that match buyers and sellers to find counterparties for transactions, alternative to traditional exchanges, often used for trading stocks or bonds.

Alternext

Alternext is a subsidiary market by the stock exchange Euronext designed for small and mid-sized companies that do not meet the regulatory listing requirements of the main stock exchange, providing a potentially easier access point to capital markets.

Altman Z-score

The Altman Z Score is a formula used to predict the likelihood of a company entering bankruptcy within two years, based on various corporate income and balance sheet values.

American depositary receipts (ADRs)

American Depositary Receipts (ADRs) are certificates issued by US banks representing shares in foreign companies, allowing these shares to be traded on US stock exchanges.

American National Standards Institute (ANSI)

The American National Standards Institute (ANSI) is an organisation that oversees the development of standards for products, services, processes, and systems in the US.

Amex Composite Index

The Amex Index refers to a series of stock market indices on the NYSE American, which lists small to medium-sized US and international companies, providing a benchmark for their performance.

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Amex Gold Miners Index

The Amex Gold Miners Index is a stock market index that tracks the performance of major companies involved in the gold mining industry, traded on the NYSE American exchange.

AMX index (Midcap)

The AMX Index is a Dutch stock market index that tracks the performance of mid-cap stocks on the Euronext Amsterdam, providing a benchmark for their economic health.

Ancillary Revenue

Ancillary revenue refers to the income derived from goods and services that complement primary business operations, such as baggage fees for airlines or maintenance services for equipment manufacturers.

Angel Investor

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity, typically focusing on early-stage ventures.

Animal spirits

In finance, animal spirits refer to the emotional and psychological factors that drive traders’ decisions, leading to fluctuations in financial markets beyond what would be expected from rational behaviour.

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Annual equivalent rate (AER)

The annual equivalent rate (AER) is a re-calculation of the rate of interest on a loan or other debt product to give the figure as it would be if it were calculated annually. This is valuable for consumers with debts where interest is worked out monthly or quarterly.

Annual general meeting (AGM)

An annual general meeting (AGM) is a yearly gathering of a company's interested shareholders that allows stakeholders to receive updates on the company's health and ask questions to the board of directors.

Annual percentage rate (APR)

The annual percentage rate (APR) is a detailed measure of the cost of borrowing on an annual basis. It includes interest and any additional fees or charges, making it a key indicator for comparing different loans and credit terms.

Annual Percentage Yield

The annual percentage yield (APY) measures the total amount of interest paid on an account, based on the interest rate and the frequency of compounding. It shows how much a deposit will earn in a year.

Annual total return

Annual total return represents a percentage that shows the total gain or loss of an investment over a one-year period, incorporating all sources of investment income including dividends, interest, and capital gains.

Annualized loss expectancy

Annualised loss expectancy, or ALE, is a risk-management metric used to estimate the monetary loss that an organisation can expect within a year due to risks identified in its operations.

Annuities

Annuities are financial products structured to provide a steady income stream, and are typically used as part of retirement strategies. Payments from annuities can be scheduled over a fixed period or for the recipient's lifetime.

Arab Monetary Fund (AMF)

The Arab Monetary Fund is an Abu-Dhabi based regional financial organisation focused on fostering monetary cooperation and financial stability among its member countries in the Arab world.

Arbitrage

Arbitrage refers to when an asset is simultaneously purchased and sold in different markets in an attempt to profit from price discrepancies, exploiting these differences to earn potentially risk-free returns.

Arbitrage betting

Arbitrage betting is a strategy where bets are placed on all possible outcomes of an event at odds that guarantee a profit regardless of the result, often exploiting differences in bookmaker odds.

Arbitrage pricing theory

Arbitrage pricing theory (APT) describes an asset pricing model that predicts the returns of a financial asset based on its exposure to multiple risk factors, and serves as an alternative to the capital asset pricing model, or CAPM.

Articles of incorporation

Articles of incorporation are legal documents filed with a governmental body to legally document the creation of a corporation. They outline the primary purposes, structure, and other essential details of the company.

AScX index (Small Cap)

The ASCX Index tracks the performance of small market cap companies listed on the Euronext Amsterdam, offering a benchmark for the smaller company segment of the Netherlands stock market.

Ask Price

The ask price is the minimum price a seller is willing to accept for an asset. In trading, it's the lowest price you can buy a security, such as a stock or currency.

Asset

An asset refers to any resource with economic value that an individual, company, or institution owns or controls with the expectation that it will provide future financial benefit. Assets can include shares, commodities, real estate, and currencies, many of which can be traded with derivative products such as CFDs.

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Asset allocation

Asset allocation refers to an investment strategy that aims to balance risk and reward by segmenting a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.

Asset Classes

An asset class is a group of securities that behave similarly in the marketplace, are subject to the same laws and regulations, and are typically used together as part of an investment strategy, such as shares, commodities, or indices.

Asset purchase

An asset purchase involves acquiring specific assets of a company rather than its stock. This method allows the buyer to obtain only the parts of the business they want, avoiding unwanted liabilities.

Asset stripping

Asset stripping describes the practice of buying a company and then selling its individual assets separately for a profit, often disregarding the long-term health or viability of the original company.

Asset Valuation

Asset valuation is the process of determining the current worth of a financial asset or company. It might involve methods such as discounted cash flow analysis, comparable company analysis, or using market values for assets like stocks and bonds to establish their fair market value.

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Asset-backed commercial paper program

An asset-backed commercial paper program involves issuing short-term securities, backed by a pool of assets, typically used by companies to meet immediate cash flow needs.

Asset-based approach

An asset-based approach is a method of business valuation that focuses on the value of a company's tangible and intangible assets, rather than its earnings or market position.

Assets under management (AUM)

Assets under management refers to the total market value of the investments that a financial institution or asset manager manages on behalf of clients. AUM can include money, real estate, and other assets that are being actively managed.

Association of the Luxembourg Fund Industry

The Association of the Luxembourg Fund Industry (ALFI) is a professional organisation that represents the interests of the Luxembourg investment fund community, promoting its development while ensuring its members operate within the legal and regulatory framework of the market.

Assurance contract

An assurance contract is a financial arrangement, typically related to insurance, where coverage is provided against certain events in exchange for premiums paid by the policyholder. The term is also used in economics to describe a scenario where a project is funded after a set amount of pledges are secured to ensure its viability.

Athex 20

The ATHEX 20 is a stock market index of the twenty largest companies by market capitalisation listed on the Athens Stock Exchange in Greece. It serves as a benchmark for the performance of the Greek equities market.

Attitude to Risk

Attitude to risk refers to the willingness of a trader to take positions that represent a higher chance of losing their capital. More risk-averse traders prefer lower risk assets that may have less upside but also less downside, while risk-seeking traders accept the higher chance of losing money for more potential upside.

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Auction process

The auction process definition explains a method of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. It’s conducted in a public setting where multiple potential buyers place competitive bids.

Audited account

An audited account is a financial statement that has been examined and verified by an independent auditor. The audit process ensures that the accounts accurately represent the entity’s financial position and comply with relevant accounting standards and regulations. This provides assurance to stakeholders about the accuracy of financial reporting.

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Auditor

An auditor is someone qualified to produce a set of audited company accounts, and is usually an accountant by profession. They have the duty to scrutinise the numbers presented by management and raise questions where there are concerns.

Australian Securities Exchange

The Australia Securities Exchange is the primary securities exchange in Australia, located in Sydney. It hosts the trading of shares and other securities. The related index market, which lists the leading blue-chip Australian companies, can be traded on Capital.com as the Australia 200.

Automated Market-Making (AMM)

Automated market making (AMM) is a type of trading system that uses algorithms to set buy and sell prices, providing continuous liquidity to markets. AMMs determine prices based on trading volume and demand, functioning without traditional human market makers.

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Automated Trading

Automated trading involves the use of computer programs and algorithms to enter and exit trades based on pre-defined criteria and without human intervention, often used to execute orders rapidly and at optimal prices.Learn more

Automated Valuation Model (AVM)

An automated valuation model, or AVM, describes a service that uses mathematical modelling to value properties by analysing various data points, commonly used by real estate industries and lenders for quick property appraisals.

Average accounting return

The average accounting return is a financial ratio that reflects the average profits earned by an investment relative to its initial cost or average book value.

Average accounts receivable

Used by businesses, average accounts receivable is a measure used to determine the average amount of money being owed by customers over a period, typically calculated by averaging the opening and closing balances of receivables over a fiscal period.

Average Daily Trading Volume

Average daily trading volume refers to the average number of shares or contracts traded for a specific security or in a market during a specific period, typically calculated over a day. This figure helps investors gauge the liquidity and activity level of the trading asset, influencing decisions regarding the ease of entering or exiting positions.Learn more

Average Price

Average price is the mean price of a good or service over a specific time period, often used to smooth out price data to see underlying price trends more clearly.Learn more

Average propensity to consume

The average propensity to consume is an economic measure that shows the proportion of total income or total expenditure spent on consumption. It indicates how spending levels change with income levels.

Average propensity to save

The average propensity to save represents the fraction of total income that a person saves rather than uses for consumption. It is calculated as savings divided by total net income.

Averaging Down

Averaging down is an investment strategy that involves buying additional shares of a stock that one already owns after the price has dropped, decreasing the average price per share.

What is Indian Trading League?

The definition of Indian Trading League (ITL) refers to India's first online stock and commodity trading competition organised by Samco Securities. Participants compete against each other to demonstrate their skills in maximising trading returns.

The competition was organised by the Indian brokerage Samco Securities, and the first season debuted in 2015 in India. ITL concluded its second edition in May 2017.

Participants were competing in real time, trading with real money. Among them were the cricketing star Mr Kapil Dev and Siddharth Meta, the founder of Bay Capital.

Any Indian citizen can join the competition regardless of their background. From investors, intraday traders, positional traders to commodity traders and businessmen can join the competition. Its objective is to attract more people into the capital markets.

The winner could get a cash prize of INR 10m. On top of the money, the winner can become a fund manager and be known as “India’s smartest trader and investor”.

Key points

The Indian Trading League is India's first real-time online stock and commodity competition, organised by Samco Securities.
The competition is open to everyone, including those without a professional background in finance.
Some of the famous participants included cricketing star Mr Kapil Dev and Siddharth Meta, the founder of Bay Capital.
The competition’s main goal is to attract more people into the capital markets.
Participants compete in a real-world environment, trading with real money.

Indian Trading League explained

Yet what does the Indian Trading League mean and how does the Indian Trading League work? Participants compete on the ITL platform to showcase their trading skills. The winner would be the one who generated the highest percentage net return, also known as the Absolute Return on Net Funds (ARONF), a methodology deemed fair by global auditing and tax consultant Deloitte.

To participate in the competition, traders had to register with Samco, which was also the ITL's authorised broker. Registration was free, but participants must deposit a minimum of INR25,000. The brokerage fee was flat at INR20 per transaction, regardless of order size.

Once they registered, participants could start trading the asset class of their choice: equities, commodities, derivative products and more. Winners were announced weekly, monthly, quarterly and on a yearly basis.

ITL types

Participants are free to choose from the six formats to compete under:

The Traders League

For individuals trading the equities and derivatives section of India's stock exchange.

The Investors League

For investors only and disqualifies anybody who has traded futures and options.

The Women's League

For female traders in the traders and investors leagues.

The Commodities League

For individuals trading in commodities futures on the Multi Commodity Exchange.

The Students League

A special league for students below the age of 27.

Royale League

For traders and investors with larger capital, greater than IND2,673. In addition to the money prize, the winners of the Royal League would get a fund management contract with $1m under management.

The last two leagues – the Student and Royal league – were added in the second season, which ran from 1 May 2016 to 31 March 2017. The first four types were from the first season, running from 19th May 2015 to 31 March 2016.

Participants in the second season received mentoring to help them better understand their own trading habits as either investors or traders. Additionally, they could evaluate and benchmark their performance against other market participants who exhibited similar traits.

Medals and penalties

In Season 2, the organiser introduced medals to reward participants for their trading and investment achievements and penalties for participants who booked losses.

There were three medals: gold, silver, and bronze. Participants won gold medals when their profits exceeded 100%, when they successfully wrote options and received 100% premium, and when they consistently maintained a 60% trading accuracy ratio over the course of the year.

Participants who were able to maintain a 5% stop loss on a trading position, who were "Capital Conservers" by not losing more than 10% of their capital, and who were "Smart Hedgers" by hedging their speculative positions all received silver medals.

Participants who, among other things, made their first profitable trade, consistently saved and invested money, or made their first index trade, received the bronze-level basic reward.

The accumulated medals helped the participants to move up their levels, from an ITL Rookie or level 1 to achieve the top level, ITL Master (level 5).

Samco CEO Jimeet Modi said in the statement:

“Success in the stock market requires traders and investors to do a few things correctly and consistently. However, there is no platform or formal education to help people get better. The ITL Medals platform is the first gamified platform in the World, which not only gratifies investors and traders instantly but also charts out goal oriented trading levels and maps the journey for being an excellent and successful market participant.”

As for penalties, the organiser introduced the red and yellow cards. Participants could be given red cards if they lost more than half of their capital, for example.

Participants with an overly diversified portfolio received yellow cards. They were considered over-diversified if they owned more than 30 stocks or if their portfolio was excessively concentrated, with more than 80% of their capital invested in a single stock.

ITL winners

Chaitanya Jaiswal from Indore won INR10m cash prize in the Indian Trading League edition 1, according to a press release from Samco Ventures. Jaiswal, who was a day trader, generated 3,176% returns on investment in a 10-month period. He won the title India’s best trader and became a manager of a $1m fund from the ITL.

Other season winners include Jyoti Kushwah, who won India’s best Woman Trader, generating 2,266% returns, and Vishvesh Vijayvargiya, who won India's Best Investor by generating 1417% returns.

FAQs

When was the first Indian Trading League competition?

The first season of Indian Trading League ran from 19th May 2015 to 31 March 2016.

Who runs the Indian Trading League competition?

Indian brokerage Samco Securities organised the competition.

How to win the Indian Trading League competition?

First, participants registered with Samco Securities and paid a deposit of minimum INR 25,000. Once registered, participants could choose to invest in the asset classes of their choice: equities, commodities, derivative products and more.

They can choose to compete in one of these categories: the Traders League, the Women’s League, the Investor League, the Commodity League, Student League and Royal League.

Winners will be picked on a daily, weekly, monthly, and annual basis. But the top winner was the participant who generated the highest percentage net return or known as the Absolute Return on Net Funds (ARONF), a method that was viewed as fair by the global auditing and tax consultant Deloitte.