CA Full Form in Share Market

What is the Full Form of CA in the Share Market?

The CA Full Form in the Share Market is Contingent Absolute order. This is a type of order that is placed along with certain conditions such as a certain price or time, before it is executed. The contingent order will become life or will be executed when the event occurs. An example of a contingent order is the stop loss order.

Understanding the Contingent order better:

The contingent order will involve the simultaneous execution of two or more transactions that are contingent on each other. All these transactions should, however, to processed at the same time; otherwise, the order will remain pending until they can get executed at the same time. A contingent order could also be based on another event or order or other criteria such as time, price, volume, etc.

Uses of Contingent orders:

Contingent orders are beneficial in a number of ways, they allow the trader to implement multiple positions or a trading strategy in the trade. They are used to manage or avoid risk associated with trading and some investors use them as their entry and exit strategy as well. Hedgers use contingent absolute orders to avoid the potential decline in the value of the underlying asset.