Tag Archives: stock market

Types of Margins

TYPES OF MARGINS The Margin system for Futures and Options segment of NSE is explained below: INITIALMARGIN: Initial margin in Futures and Options segment is computed by NSCCL upto client level for open positions of CMs/Tms. These are required to be paid upfront on gross basis at individual client level for client positions and on net basis for proprietary positions. NSCCL collects initial margin for

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Stock Market Inquiry

INQUIRY WINDOW The inquiry window enables the user to view information such as Market by Price (MBP), Previous Trades (PT), Outstanding Orders (00), Activity Log (AL), Snap Quote (SQ), Order Status (OS), Market Movement (MM), Market Inquiry (MI), Net position, on line backup, Multiple index Inquiry, Most active security and so on. Relevant information for the selected contract/security can be viewed. We shall look

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Future & Options Market

THE TRADER WORKSTATION MARKET WATCH WINDOW: The following windows are displayed on the Trader Workstation Screen. TITLE BAR TICKER WINDOW OF FUTURES & OPTIONS MARKET TICKER WINDOW OF UNDERLYING (CAPITAL) MARKET TOOL BAR MARKET WATCH WINDOW INQUIRY WINDOW SNAP QUOTE ORDER/TRADE WINDOW SYSTEM MESSAGE WINDOW As mentioned earlier, the best way to familiarize oneself with the screen and its various segments is to actually spend

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Stock Market Conditions

ORDER TYPES AND CONDITIONS: The system allows the trading members to enter orders with various conditions attached to them as per their requirements. These conditions are broadly divided into the following categories: TIME CONDITIONS. PRICE CONDITIONS. OTHER CONDITIONS. Several combinations of the above are allowed thereby providing enormous flexibility to the users. The order types and conditions are summarized below. TIME CONDITIONS: 1.      DAY

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Stock Market Questions And Answers

QUESTIONS AND ANSWERS ON CHAPTER 4 Q. On 15th January, Mr.Arvind Sethi bought a january Nifty futures contract which cost him Rs.2,40,000. Each Nifty futures contract is for delivery of 100 Nifties. On 25th January, the index closed at 2460. How much profit or loss did he make ? +6000 -4500 -3000 +2500 A. Mr. Sethi bought one futures contract costing him Rs.2,40,000. At

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Options Trading Strategy

SPECULATION: BEARISH SECURITY. SELL CALLS OR BUY PUTS Do you sometimes think that the nse india is going to drop? That you could make a profit by adopting a position on the market? Due to poor corporate results, or the instability of the government, many people feel that the stocks prices would go down. How does one implement a trading strategy to benefit from a downward movement in

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Stock or equity portfolio

HEDGING: HAVE UNDERLYING DUY PUTS Owners of stocks or equity portfolios often experience discomfort about the overall stock market movement. As an owner of stocks or an equity portfolio, sometimes you may have a view that stock prices will fall in the near future. At other times you may see that the market is in for a few days or weeks of massive volatility,

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Option Premium Profile

PAYOFF PROFILE FOR BUYER OF CALL OPTIONS: LONG CALL A call option gives the buyer the right to buy the underlying asset at the strike price specified in the option. The profit/loss that the buyer makes on the option depends on the spot price of the underlying. If upon expiration, the spot price exceeds the strike price, he makes a profit. Higher the spot

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Future Trading

ARBITRAGE: UNDER-PRICED FUTURES. BUY FUTURES. SELL SPDT Whenever the futures price deviates substantially from its fair value, arbitrage opportunities arise. It could be the case that you notice the futures on a security you hold seem under-priced. How can you cash in on this opportunity to earn risk less profits ? Say for instance ABC Ltd., trades at Rs. 1000. One month ABC futures

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Bearish Security

SPECULATION, BEARISH SECURITY, SELL FUTURES Stock futures can be used by a speculator who believes that a particular security is over valued and is likely to see a fall in price. How can he trade based on his opinion ? In the absence of a deferral product, there wasn’t much he could do to profit from his opinion. Today all he needs to do

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