OPTIONS PAYOFFS The optionality characteristic of options results in a nonlinear payoff for options. In simple words, it means that the losses for the buyer of an option are limited, however the profits are potentially unlimited. For a writer, the…
PRICING FUTURES Pricing of futures contract is very simple. Using the cost of carry logic, we calculate fhe fair value of a futures contract. Every time the the observed price deviates from the fair value, arbitragers would enter into trades…
Ensure that the intermediary (broker/sub-broker) has a valid SEBI registration certificate. Enter into an agreement with your broker/sub-broker setting out terms and conditions clearly. Ensure that you give all your details in the ‘Know Your Client’ form. Ensure that you…
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investor’s account with his Depository Participant (DP). Get Live Intraday BTST Short Term…
The biggest difference between them is the length of time you hold onto the assets. An investor is more interested in the long-term appreciation of his assets, counting on that historical rise in market equity. He’s not generally concerned about…
An investor does not get any protection if he trades outside a stock exchange. Trading at the exchange offers investors the best prices prevailing at the time in the market, lack of any counter-party risk which is assumed by the…