Stock Market Trading

ADVANTAGES AND BENEFITS OF COVERED CALL STRATEGY ‘The biggest advantage of covered call strategy is it increases and improves the odds of successful trading. Another biggest share tips benefit is that it can be implemented in two of the three possible stock…

Traders And Investors

SOME STRATEGIES FOR WRITING COVERED CALLS STRATEGY 1       This is the strategy that works best in India since options of fundamentally strong stocks continue to have some time premium left till the last day. You should write at-the-money calls since…

Stock Trading

WRITING COVERED CALLS  Writing (Selling) Call Options when you already own the underlying is called writing covered call options. It is against writing Naked options which can have unlimited risk. HOW WRITING COVERED CALL OPTION WORKS As discussed earlier a…

Options Premium Value

TAXATION OF DERIVATIVES TRANSACTIONS IN SECURITIES  SECURITIES TRANSACTIONS TAX ON DERIVATIVES TRANSACTIONS Finance Act (N0.2) of 2004 has introduced Securities Transactions Tax on all derivatives transactions entered into a recognized stock exchange. This tax is payable by the seller of…

Equity Index

ACCOUNTING AT THE INCEPTION 0f THE CONTRACT Every client is required to pay to the trading member/ clearing member, the initial margin determined by the clearing corporation as per the bye-laws/regulations of the exchange for entering into an equity index futures…

Future Trading

REPORTING OF CLIENT MARGIN Clearing Members and Trading Members are required to collect upfront initial margins from all their Trading Members L constituents. Clearing members are required to compulsorily report, on a daily basis, details in respect of such margin…

Market Wide Position

CLIENT LEVEL POSITION LIMITS The gross open position for each client, across all the derivative contracts on an underlying, should not exceed 1 % of the free float market capitalization (in terms of number of shares) or 5% of the open interest in all derivative contracts in the same underlying stock (in terms…

Trading Member Position

FORMS OF COLLATERALS ACCEPTARLE AT NSCCL Members and dealers, authorised dealer have to fulfill certain requirements and provide colleteral deposits to become members of the Future and Options segment. All colleteral deposits are segregated into cash component and non-cash component.…