Money Making Candlestick Formations Candlestick Line Hammer An important bottoming candle-stick line. The hammer and the hanging man are both the same line, that is a small real body (white or black) at the top of the session’s range and…
Money Making Candlestick Formations Candlestick Line Candlestick Line Candlestick lines and charts — traditional Japanese charts whose individual lines look like candles, hence their name. The candle- stick line is comprised of a real body and shadows. See “Real body”…
QUICK REFERENCE GLOSSARY ON FUTURES AND OPTIONS FUTURES TERMINOLOGY SPOT PRICE: The price at which an asset trades in the spot market. FUTURES PRICE: The price at which the futures contract trades in the futures market. CONTRACT CYCLE: The period over which a contract trades. The index…
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…
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…
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…
ACCOUNTING AT THETIMi OF PAYMENT/RECEIPT OF MARGIN Payments made or received by the seller/writer for the margin should be credited/debited to the bank account and the corresponding debit/credit for the same should also be made to “Equity Index option Margin…
ACCOUNTING IN CASE OF DEFAULT When a client defaults in making payment in respect of a daily settlement, the contract is closed out. The amount not paid by the client is adjusted against the initial margin. In the books of…
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…
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…