RELATION BETWEEN FUTURE PRICE & SPOT PRICE

RELATION BETWEEN FUTURE PRICE & SPOT PRICE

The relation between Future price and Spot price of an Index or a Stock is a widely discussed subject in derivatives trading. The terms Premium, Discount, Cost of Carry (CoC),
OPT FOR OPTION – PART – III

OPT FOR OPTION – PART – III

Now we shall look into the value of Option. The Option premium could be broken into two parts – Intrinsic Value and Time Value. Intrinsic Value of the Option: The intrinsic
BASICS OF STOCK LENDING & BORROWING MECHANISM

BASICS OF STOCK LENDING & BORROWING MECHANISM

Most of us must have faced the following situations while trading: Stocks have been lying idle in your demat account since you are a long term investor You find some
TAXATION – ARE YOU FILING IT CORRECTLY?

TAXATION – ARE YOU FILING IT CORRECTLY?

Filing your taxes is always a pain point. You have to sit with your CA, account for all your income, expenses, profits, losses, etc. Most of us end up confused
MORE ABOUT OPTIONS – PART-II

MORE ABOUT OPTIONS – PART-II

In the last article we discussed how the direction, in which we expect the prices of the underlying asset to move, determines whether to buy a Call or a Put
WHAT ARE OPTIONS?? – PART-I

WHAT ARE OPTIONS?? – PART-I

“An Option is a contract that gives the buyer the right but not the obligation…………” You might have seen the above words several times but were not able to enter
MARKET MAYHEM – WORST CRASH IN OVER 6 YEARS

MARKET MAYHEM – WORST CRASH IN OVER 6 YEARS

The crude oil prices dropped below $50/barrel today, January 6, their lowest since April 2009. It raised worries over global growth slowdown. The tumbling European and US stock markets, spread
THE NITTY-GRITTY OF AUCTION MARKET

THE NITTY-GRITTY OF AUCTION MARKET

An auction market is a market in which buyers indicate the highest price they are willing to pay and sellers indicate the lowest price they are willing to accept. A trade occurs when the