Future and Options

Best Demat Account – Top Online Trading Account in India for 2020

For trading in stock market you need to have demat account as your primary objective. There are numerous Indian guys who are in search of best demat account in India 2020 or best trading account in 2020 or best brokerage account in India or even more specifically best discount broker in India 2020. Here we …

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What is Hedger, Speculator and Margin Calculation? Definition with Examples

When traders look for a way to diversify the market for stocks and bonds, they often end up trading futures and options. Involved in the futures market and options offered the opportunity to speculate on the price of goods or securities without actually owning any time. Future trading can be done in two ways, hedging and …

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What is Margin Trading? Definition, Examples, Advantages and Risk of Leverage

Margin Trading Definition: Margin Trading is purchasing stocks without investing the full capital. The trades have a systematized strategy for purchasing stocks in future market without having the capital. For example, Assume that you want to purchase 1000 shares of SBI, which exchanges at Rs.200, you will require around Rs.2,00,000. Whereas in margin trading, you …

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What is Margin and M2M (Mark to Market) in Futures Trading of Derivative Market

Margin Definition: The main objective of these investments is to make a margin and help to mitigate the risks. Traders utilize futures contracts as a method to minimize price fluctuations. For example, if a seller of soybeans knows you will have a certain amount produced in the future, you can sell a futures contract on …

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What is Open Interest in Future and Options Trading? Definition, Examples and Analysis

Open Interest Definition: The Open interest is the total number of options or futures contracts that have not been closed or released on a particular day. It also refers to the number of orders for the world market before the stock market log. Open interest is an important fact for options traders to follow. Using …

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What is Hedging? Definition, Examples and Hedging Strategies in Financial Markets

Hedging Definition: A hedging is designed to protect the value of a share of market volatility. Hedging strategies may include derivatives, short selling and diversification. Coverage usually involves placing a trade or investment in an asset that moves in the opposite direction of stock prices. Therefore, when the stock price falls, the coverage should increase …

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What are Futures Prices? Definition, Example and Effects of Dividends on Future Price

Futures Prices Definition: Futures prices are not as simple as stock prices. But, it is easy to calculate futures prices if you understand what I mean those units. Note that futures markets and thus vary the process used to calculate the price of a particular futures market may not be appropriate for a different market. …

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What is Nifty Futures and How to Trade in Nifty futures with Examples of Indian Market

Introduction to Nifty Futures: Nifty futures has a very special place in the Indian derivative markets. It’s the most frequently traded futures tool, and in the Indian derivative markets; it has become the most liquid contract. For Indian equity market, NIFTY 50 index is the benchmark stock market index of National Stock Exchange of India, …

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What is Shorting or Short Sale? Definition, Rules with Example for Financial Markets

Shorting Definition: Basically, shorting is the act of selling your stock to buy it later after the prices fall, when you anticipate that the prices are likely to decline.  Let us understand the concept with a simple example. You bought a bungalow 2 years for a price Rs. 3 million and you sell it today …

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What is Leverage and Payoff? Definition and Meaning with Example

Leverage Definition: Leverage means simply borrowing used for finance an operation. As simple as that! That is, instead of performing an operation with its own funds will be done with equity and credit. The main advantage is that you can multiply the profitability and the main drawback is that the operation did not go well …

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