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Wealth Street FAQs Wealth Street offers investment services in the stock market (PSX) and the commodities futures market (PMEX), along with comprehensive investment education resources like video tutorials and personalized courses.
Wealth Street also provides a unique opportunity for individuals to collaborate with us in our financial empowerment initiatives.
All local resident / non-resident Pakistanis are eligible to open a trading account with us.
Think of a stock as a tiny slice of a company. If you buy a stock, you’re part-owner of that company!
For instance, if a business has a total of 100 shares and you possess one, you hold a 1% stake in that company. The worth of your share is essentially 1% of the company’s overall market value, determined by the total valuation of all shares in circulation.
Commodities are basic items we use every day, like oil for cars, gold for jewelry, and wheat for bread. The prices of these commodities change based on how much people want them and how much is available. So, whether it’s a farmer growing coffee or a company drilling for oil, commodities connect to everything we do.
For ease of access and use, investors can now open an online trading account in a few simple steps. An online trading account is a type of account where investors can place their own orders using their electronic devices such as mobile, tablet, laptop etc. in lieu of other methods, like calling your broker and telling them your order.
The stock market is where investors buy and sell listed shares of companies. It’s a set of exchanges where companies issue shares and other securities for trading. The share prices of the shares listed on the Stock Exchange fluctuate according to the buy & sell transactions taking place.
A commodities futures market is where investors buy and sell futures contracts of commodities for delivery on a specified future date. Contracts such as Gold, Oil and Currency pairs are the most common types of contracts traded in a futures market.
The Pakistan Stock Exchange (PSX) is the primary stock exchange of Pakistan, located in Karachi, with digital access to all. At the PSX, people invest their money in different companies, with the expectation that their value will grow over time. PSX, like all stock exchanges over the world, helps companies get the money they need to grow, and gives investors a chance to be part of their success stories while sharing in their profits.
The Pakistan Mercantile Exchange (PMEX) is Pakistan’s first and only multi-commodity futures exchange. PMEX provides a platform where you can trade in commodities like gold, oil, and even agricultural products like rice and wheat. At PMEX, you don’t exchange actual goods right away; rather, you deal with contracts that promise to buy or sell these goods at a future date. This way, investors can plan better for the future, protecting themselves from unexpected price changes or investing in goods they believe will be worth more later on.
A futures contract is a legal agreement to buy or sell something at a set price on a specific future date. Here’s a simpler breakdown:
It’s an agreement to trade something in the future, like oil, gold, or even financial assets like currencies or stock indices.
Futures contracts are traded on special markets called futures exchanges, like the Pakistan Mercantile Exchange (PMEX), ensuring everything is done fairly and transparently.
Features of futures contracts:
Speculation: Traders use them to bet on price changes, hoping to make a profit.
Margins: To trade futures, you need to deposit some money upfront (called a margin) as a kind of security.
Daily Settlements: Every day, the contract’s value is adjusted to the market price, and gains or losses are settled daily.
Expiration Date: Each contract has a specific date when the trade must be completed.
– Businesses use them to protect against price changes. For example, a farmer might lock in a price for their crops to avoid market fluctuations.
– Traders use them to bet on price changes, hoping to make a profit.
You can invest in international products such as gold, oil, indices, currency pairs and agricultural products through PMEX which is regulated by the SECP.
Both PSX and PMEX present unique investment opportunities. PSX is ideal for those looking to grow their wealth over time through the stock market, recognizing that while there’s risk involved, there’s also potential for substantial long-term rewards. While PMEX is a good option if you are looking to speculate on price movements or hedge against price fluctuations in the commodities market.
So the answer is that both platforms are good options for investors depending on the kind of investment they want to make. You can always choose to diversify your investments and invest in both markets to balance potential risks and rewards, exposing yourself to a wider range of opportunities across different sectors and commodities.
If you’re new to investing, you can start with a small amount that feels comfortable. This way, you can dip your toes in without risking too much.
When considering how much to invest, always ensure you have a safety net that consists of enough savings to cover your necessary expenses. Remember, the key is to invest only what you can afford to lose, as all investments come with risks.
Rs. 5000 is the minimum amount required for investment.
Wealth Street is regulated by the Securities Exchange Commission of Pakistan (SECP) and is a licensed broker, providing a secure and safe platform for your money. Wealth Street does not directly handle any deposits made in your trading accounts. For PSX transactions, we have partnered with EClear to take care of settlement and clearing through NCCP, while CDC retains custody. Whereas for commodities futures transactions, the organization of PMEX itself has total control of our clients finances, settlement and clearing.
Account Opening FAQs All local resident / non-resident Pakistanis are eligible to open a trading account with us.
Simply click on “Open an Account” on our website and fill out the required information to open your account.
Simply click on “Open an Account” and fill out the required information to open your account.
The following basic information is required to be provided by investors:
Investors are required to provide the following documents at the time of registration:
Your account can be opened with PSX within 1 hour given that you submit all the required information and documents correctly and there is no discrepancy. Discrepancy resolution can take up to 1-2 days.
Your account can be opened with PMEX within 1 hour given that you submit all the required information and documents correctly and there is no discrepancy. Discrepancy resolution can take up to 1-2 days.
After due verification, One Time Password (OTP) will be sent on the registered mobile number of the Investors.
The OTP provided expires after 168 hours.
After inputting the OTP, your account will be opened within 1 hour given that you have submitted all the required information and documents correctly and there is no discrepancy. Discrepancy resolution can take up to 1-2 days.
Investing FAQs Once you’ve fulfilled the account opening requirements and transferred funds to your trading account, you’re ready to start placing orders.
Once your account is activated, download the Wealth Street app and login to your account to start trading on PSX
Once your account is activated, download the Meta Terminal 5 app and login to your account to start trading on PMEX
The process to withdraw your cash is quite simple. You simply log in to the app and select the option to withdraw your cash. Once your withdrawal request is received, your cash will be transferred to your account in real time through raast.
You will receive email notifications of each trade executed not later than start of next trading day.
There are no charges.
All proceeds will be maintained consistently in your trading account until you request a cash withdrawal. You can access them through the respective trading apps.
If you’re new to investing, you can start with a small amount that feels comfortable. This way, you can dip your toes in without risking too much.
When considering how much to invest, always ensure you have a safety net that consists of enough savings to cover your necessary expenses. Remember, the key is to invest only what you can afford to lose, as all investments come with risks.
Absolutely. There’s a chance that the money you put into stocks could shrink to zero, meaning you might lose what you invested. The level of risk present highlights the importance of thinking carefully and having a plan for how you invest, helping you make smart choices whether the market is soaring high or dipping low.
Trading/Analysis Terminology Market Capitalization is when you multiply a company’s share price by its total outstanding shares. It shows the overall value of the company according to the market.
Working Capital is the difference between a company’s current assets and its current liabilities. It’s the amount of money a company possesses to pay off short-term debts. A company with a lot of working capital is unlikely to go bankrupt soon, but too much of it could mean the company is too cautious.
Earnings per Share (EPS) is what you get when you divide a company’s net income by its number of outstanding common shares. For example, if a company made Rs.1 million in a year and has a million shares, each share has made Rs.1. EPS is crucial for investors to evaluate if a stock’s price is fair.
It’s the return on an investment projected for a year, with daily compounding. For instance, a 1% return in a month suggests an annualized return of about 12%. It helps judge how well an investment performs over short periods.
Turnover Ratio measures how often a fund buys or sells its assets, calculated by dividing its purchases or sales by its average monthly assets. A 100% turnover ratio doesn’t mean every asset was traded but indicates the general trading activity.
Real Return is the investment return after adjusting for inflation. You get it by subtracting the inflation rate from the stated return. So, a 12% return with 5% inflation means a real return of 7%.
It compares a stock’s price performance against all others. Stocks with high and improving relative strength are often expected to continue performing well. Stocks are ranked from 1 to 100, with 100 being the best.
Revenue is all the money or value received by a company during a period, including sales, interest, and income from selling assets. It’s a broad measure of income, but because it includes one-time events, it can be misleading for future projections.
The Quick Ratio, or acid test, is calculated by adding a company’s cash and receivables and dividing by its current liabilities. A quick ratio of 1 or more is good, indicating the company can meet short-term obligations without selling inventory.
YTD stands for year-to-date, referring to the period from the start of the current year to the current date.
YoY stands for year-on-year, comparing figures from one year to the corresponding year in the past.
QoQ stands for quarter-on-quarter, comparing figures from one quarter to the previous one.
MFY means Month Financial Year, and QFY means Quarter Financial Year, referring to specific periods within a fiscal year.
FY stands for Fiscal Year, a one-year period that companies use for financial reporting and budgeting.
This refers to shares that have been issued to the public and are available for trading on the stock exchange.
Companies might split their stock to lower the share price, making it more appealing to investors. While this increases the number of shares, it doesn’t affect the company’s market capitalization or the total value of an investor’s holdings.
Essentially, this is what’s left of a company’s assets once all liabilities are settled. It’s a useful figure for assessing a stock’s value.
This strategy involves betting on a stock’s decline by borrowing shares to sell at the current price, hoping to buy them back cheaper. Profits come from the difference if the price falls, but there’s a risk of loss if the price rises.
This involves borrowing money from a brokerage to purchase stocks, with the bought securities serving as collateral for the loan.
A market order is a request by traders to buy or sell a commodity at the best current price available. The main aim here is swift execution. However, the exact price at which the trade will occur isn’t guaranteed.
Limit orders allow traders to set a specific price at which they wish to buy or sell a product. Execution happens only when the market price matches the trader’s set price. If you’re buying, your order will go through when the market drops to your set price. If selling, it’ll happen when the market rises to your price.
Stop Loss orders help traders manage risk by setting a price lower than the buy price for purchases or higher than the sell price for sales. The goal here is to minimize losses if the market moves against your position. Essentially, it works just like setting a limit order to close your position to prevent further loss.
Take Profit orders are set to automatically close a trade at a profit by targeting a price above the purchase price for buys or below the sell price for sells. It’s a way for traders to lock in profits at a predetermined level. If the market doesn’t hit the specified price, the order won’t execute, similar to how limit orders function for managing potential gains.
