What is Bear Spread? Bear spread is an options strategy which is made of two Put options. In bear Spread Trader buys a put option and also sells a put option of same expiry but of lower strike. Traders use a Bear spread when they are mildly bearish on stock […]
What are Candlestick Charts or Japanese Candlestick Patterns?
History: This technique of analyzing prices was first used by the Japanese in 17th century. They used this technical analysis tool to study the prices of rice. Although this idea originated from Japan, this technique was later propagated by a legendary called Steve Nison of USA. How a price Candle […]
What are Breakouts in Technical Analysis and How to use Breakouts in Trading?
What is breakout in the stock market in the study of technical analysis? A breakout is a price movement of a stock or commodity beyond an identified level of resistance or support, which is usually followed by heavy volumes and an increased amount of volatility. Traders buy the stocks or commodities […]
Trading Index Options
Index Options Explained Just like a derivative future contract, options too are an derivative product where the buyer holds a right to execute option of either buying or selling of an underlying asset at a certain pre-determined price (also known as the strike price) during a pre-determined time period. An Index option is a type of option […]
Trading Stock Options in India
Stock Options Definition A stock option is a type of option where the underlying asset is a stock. The other type of options defined based on the underlying are Index options. Before we discuss stock options in further detail, check information on Call options and Put options. They payoffs and risk-rewards applicable for […]
Bull Spread : Bull Call Spread Strategy
Bull Spread Bull spread is an options strategy which is made of two call options. In bull Spread Trader buys a call option and also sells a call option of same expiry but of higher strike. Traders use a Bull spread when they are mildly bullish on stock in near […]
Risk Management for Investors
Best Practices for Risk Management for Investors Introduction: Unpredictable and volatile moves in the market, as it goes from one crisis to another, have brought a tight focus on risk management. The shock losses many investors have suffered when bubbles burst have highlighted the need for guidance in this regard. […]
Fundamental Analysis : Balance Sheet Analysis & Red Flags
How should an Investor look at a balance Sheet for fundamental analysis? Introduction: Balance Sheet and P&L are the most objective way of looking at the financial position of a company. Anything and everything that the business does, get’s impartially reflected in the numbers and thus ability to read such […]
Trading in MCX Copper Futures
Copper Futures Definition All the main commodity market exchanges of the world offer Copper futures. In India MCX – Multi Commodity Exchange and NCDEX are popular exchanges for Copper Futures Trading. Let’s discuss now copper futures in this article. Copper Futures drive prices from multiple factors including the influence of Speculative actions. Commodity markets demonstrate […]
Identifying Bear Markets : Chart Patterns and Bear Market Bottoms
Bear Markets Definition A bear market is a state of market in which securities prices fall amid widespread pessimism. Security prices catch the downward spiral which to some extent is also self-sustaining. Investors and traders anticipate slowdown in the economy, contraction in GDP, heavy outflow of liquidity from the system, recession […]