Stock markets are public exchanges on which company shares, also referred to as stocks, are traded. The London Stock Exchange (LSE), the New York Stock Exchange (NYSE), the Paris Bourse, the Deutsche Boerse and the Tokyo Stock Exchange are among the best known stock markets in the world. Stocks can be speculated on by a [...]
There are a range of public equity markets, also known as stock markets, operating around the world. The London Stock Exchange (LSE) is among the best known and oldest; there are others in major financial centres in Germany, France, the Netherlands, the USA, China and Japan as well as smaller ones in other regions. Share [...]
Investing through a fund manager or other financial professional does have its benefits; however it tends to reduce your ability to have direct control your investments. It also tends to reduce your ability to react to market moving events and reposition your investments accordingly. Therefore some people like to access the markets directly and on [...]
Day traders tend to speculate on the financial markets within the time period of a single day. With this form of trading, positions are often closed by the end of the day. With typical day trading products like spread betting and Contracts for Difference (CFDs) it is possible to trade stock markets indices, the foreign [...]
Contracts for Difference (CFDs) are a financial derivative product that can be traded in a number of different markets. Opening a CFDs account normally allows you speculate on individual shares, stock indices, forex markets and commodities.Speculation is always, in some measure, uncertain and the future movement of an underlying market cannot be predicted with total [...]
With the global economy in recovery mode, many people are still questioning how the financial markets got so out of control. They are also questioning something a little closer to home, their own finances.Tax efficiency, planning investments, diversifying existing investment portfolios, opportunities in fluctuating markets are all priorities. After the credit crunch everyone should understand [...]
With the global markets still recovering, many people are still questioning how the markets got so out of control. They are also questioning something a little closer to home: their own finances.Tax efficiency, opportunities in fluctuating markets, diversifying existing investment portfolios and planning investments for the future are all priorities. Everyone, of course, should understand [...]
BSE Sensex (9328.92) and Nifty (2857.25) closed 7.6% and 7.2% down respectively last week.Nifty put-call ratio was 1.13.Support for Sensex is at 8720 and for Nifty 2670.Resistance for Sensex is at 9900 and Nifty is at 3030.Inflation was also under control at 6.61 v/s 6.84 last week.Crude oil was at 37$..Market lost ground on reports [...]
Options have unique properties. These make options quite interesting trading vehicles and sometimes difficult to understand. Before explaining how to trade them and the different strategies let’s first examine the options fundamentals.
Strike Price
This is the price at which the buyer of a call option has the right to buy the underlying. For example if you [...]
This is one of the simplest techniques in derivative trading virtually nullifying the capital risk. In simple words this is a technique in which the trader used to buy two near ‘out of money’ call/put option of same strike or different strike and sell one ‘in the money’ or ‘at the money’ call/put option resulting [...]