Market Movement
The J-Hook Pattern The J-Hook Pattern is another example of being alerted when a gap up could occur. The J-Hook Pattern occurs after a trend has had a fairly strong run up. It backs off for a period, most…
Tag Derivatives Market
Gaps At The Top Of A Trend
A gap that occurs well after the beginning of a trend reversal, where stochastic are still in the midrange of an uptrend, has different implications. How do you distinguish whether a gap is a potential measuring gap? Evaluate where the…
Money Making Candlestick
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…
Client Broker Relationship in Derivative Segment
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…
Introduction To Options
INTRODUCTION TO OPTIONS In this section, we look at the next derivative product to be traded on the -NSE, namely Options. Options are fundamentally different from forward and futures contracts. An option gives the holder of the option the right…
Introduction To Futures And Options
INTRODUCTION TO FUTURES AND OPTIONS In recent years, derivatives market have become increasingly important in the field of finance. While futures and options are now actively traded on many exchanges, forward contract s are popular on the OTC market. In…
Index Derivatives
INDEX DERIVATIVES Index derivatives are derivative contracts which have the index as the underlying. The most popular index derivatives contracts the world over are index futures and index options. NSE’s market index, the S&P CNX NIFTY was scientifically designed to…
Chapter Two Market Index
CHAPTER TWO MARKET INDEX To understand the use and Function of the Index derivatives Markets, it is necessary to understand the underlying index. In the following Section, we take a look at index related issues. Traditionally, indexes have been used…
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.…
Exchange Vs Otc Derivatives Markets
Derivatives have probably been around for as long as people have been trading with one another. Forward contracting dates back at least to the 12th century, and may well have been around before then. Merchants entered into contracts with one…