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…
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…
CLIENT BROKER RELATIONSHIP IN DERIVATIVE SEGMENT. A trading member must ensure compliance particularly with relation to the following while dealing with clients: Filing of “Know Your Client” form. Execution of Client Broker Agreement. Bring risk factors to the knowledge of…
Below given cases explain activities possible for specific user categories: CLEARING MEMBER CORPORATE MANAGER: He can view outstanding orders, previous trades and net position of his client trading members by putting the TM ID., (Trading member identification) and leaving the…
BASIS OF TRADINGThe NEAT F&O system supports an order driven market, wherein orders match automatically. Order matching is essentially on the basis of security, its price, time and quantity. All quantity fields are in units and price in rupees. The…
ENTITIES IN THE TRADING SYSTEM There are four entities in the trading system. Trading Members, Clearing Members, Professional Clearing Members and Participants. 1. TRADING MEMBERS: Trading Members are members of NSE. They can trade either on their own account or…
TRADING FUTURES AND OPTION TRADING SYSTEM In this chapter we shall take a brief look at the trading system for nse india futures and options market. However, the best way to get a feel of the trading system is to actual ly…
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.…
SPECULATION: BULLISH SECURITY BUY CALLS OR SELL PUTS There are times when investors believe that security prices are going to rise. For instance, after a good budget, or good corporate results, or the onset of a stable government. How does…
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…