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…
REGULATORY FRAME WORK The trading of derivatives is governed by the provisions contained in the SC(R)A, the SEBI Act, the regulations framed the reunder and the rules and bye-laws of stock exchanges. In this chapter we look at the broad…
RISK MANAGEMENT NSCCL has developed a comprehensive risk containment mechanism for the Futures and Options segment. The salient features of risk containment mechanism on the Futures and options segment are: The financial soundness of the members is the key…
EXERCISE SETTLEMENT Although most option buyers and sellers close out their options positions by an offsetting closing transaction, an understanding of exercise can help an option buyer determine whether exercise might be more advantageous than an offsetting sale of the…
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…
CLEARING AND SETTLEMENT National Securities Clearing Corporation Limited (NSCCL) undertakes clearing and settlement of all trades executed on the Futures and Options Segment of the NSE. It also acts as legal counter party to all trades on the Futures and…