Tag Archives: day trading

Stock Market Questions And Answers

QUESTIONS AND ANSWERS ON CHAPTER Q. In Futures Trading, the profits are received or losses or paid 1.     In the delivery month 2.      On daily settlement 3.      On the day of expiry of the contract 4.      On a weekly settlement basis. A. The correct AnswerNO.2. Q. Which of the following prices is used to compute MTM of a futures contract is case it is not traded on a given

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Trading Position

CLEARING MECHANISM The clearing Mechanism essentially involves working out open positions and obligations of clearing (Self clearing/trading-cum-clearing/professional clearing) members. This position is considered for exposure and daily margin purposes. The open positions of CMs are arrived at by aggregating the open positions of all the TMs and al l custodial participants clearing through him, in contracts in which they have traded. A TMs open

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Trades in the Futures And Options

CLEARING BANKS Funds Settlement takes place through clearing Banks. For the purpose of settlement all clearing members are required to open a separate ban k account with NSCCL designated clearing bank for Futures and Options segment. The clearing and settlement process comprises of the following three main activities. CLEARING SETTLEMENT RISK MANAGEMENT. TABLE 1: PROPRIETARY POSITION OF TRADING MEMBER MADANBHAI ON DAY 1. Trading

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Derivative Trading

ELIGIBILITY CRITERIA OF INDICES The exchange may consider introducing derivative market contracts on an index if the stocks contributing to 80 % weight age of the index are individually eligible for derivative trading. However, no single ineligible stocks in the index should have a weight age of more than 5 % in the index. The above criteria is applied every month, if the index

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Index Eligibility For Trading

DETAILED CONTRACT SPECIFICATIONS FOR STOCK OPTIONS: Underlying : Individual Securities available for trading in the cash market. Exchange of Trading : National Stock Exchange of India Limited. Security Descriptor : N OPTSTK Style of Option : American. Strike Price Interval : As specified by the exchange. Contract Size : As specified by the exchange, Minimum value of Rs.2 lakh. Price Steps : Re. 0.05. Price

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Stock Future Tips

CONTRACT SPECIFICATIONS FOR STOCK FUTURES: Trading day in stock futures commenced on the NSE from November, 2001. These contracts are cash settled on trading day basis. The expiration cycle for Stock Futures is the same as for index futures, index options and stock options. A new contract is introduced on the trading day following the expiry of the near month contract. DETAILED CONTRACT SPECIFICATIONS FOR

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Trading Futures And Nifty Futures

DETAILED CONTRACT SPECIFICATIONS FOR INDEX FUTURES TRADING ON THE NSEl-S&P CNX NIFTY FUTURES Underlying Index : S&PCNX Nifty. Exchange of Trading : National Stock Exchange of India Limited. Security Descriptor : NFUTIDX NIFTY. Contract Size : Permitted lot size shall be 100 Price Steps : Re.0.05. Price Bands : Not Applicable. Trading Cycle : The futures contracts will have a maximum of three month

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Limitations of Forward Markets

LIMITATIONS OF FORWARD MARKETS Forward Markets world-wide are afflicted by several problems like LACK OF CENTRALIZATION OF TRADING, LIQUIDITY and COUNTER PARTY RISK.   In the first two of these, the basic probk much flexibility and generality. The forwc. estate market in that any two consenting aa contracts against each other. This often 1. design terms of the deal which are very conven specific

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Nse’s Derivatives Market

The derivatives trading on the NSE commenced with S & P CNX Nifty Index futures on June. 12.2000. The trading in Index options commenced on June 4. 2001 and trading in options on individual securities commenced on July 2. 2001. Single stock futures were launched on November 9. 2001. Today, both in terms of volume and turnover. NSE., is the largest derivatives exchange in

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BSE india

BSE Or Bombay Stock Exchange Going for an investment in a stock market requires a good research and knowledge of the market. You should know how different sections of the stock market works. You should also have some idea about BSE, NSE, NASDAQ…etc and their roles in the stock market. You should never try to forecast what is going to happen in the stock market. So before

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