Let’s start from the basics: Derivative is an instrument which derives the value from underlying asset’s performance. Futures is derivative product and buyers and sellers of this product are bound by a contract which obliges them to buy or sell a single or bundle of variables called bases i.e. underlying asset. […]
What is NSE Nifty Futures ?
Let’s start from the basics: Derivative is an instrument which derives the value from underlying asset’s performance. Futures is derivative product and buyers and sellers of this product are bound by a contract which obliges them to buy or sell a single or bundle of variables called bases i.e. underlying […]
What is MACD – Moving Average Crossovers?
MACD Explained MACD is an important indicator used in technical analysis. The Moving Average Convergence Divergence or MACD as it is commonly referred to is an oscillator which highlights the strength of the trend and likely reversal thereof. It uses moving averages as inputs to derive the oscillator values. Basically the indicator converts […]
Bear Spread : Bear Put Spread Strategy
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 is Dividend and Dividend Payout Ratio
Dividend Definition Dividend is the share of Company’s profit which is distributed among the shareholders of the Company. It is the return on the investment in the shares of the Company. Dividend – The Legal position, procedure and accounting There is procedure laid down in the Companies Act and the rules framed […]
Stock Split Definition The share capital of a company has definite number of shares with a specified face value. Stock split is the decision of the Board of Directors of the company to increase the number of shares by proportionately reducing the face value. Stock Split Example Example – A share […]
Online Forex Trading / Online Currency Trading in India
What is Currency Trading? Just like stocks which have free market, currencies too have free market so that they can be traded to determine equilibrium price, which earlier was not possible due to non convertibility on current. Currencies are the largest traded assets on this planet. Daily volume alone in […]
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 […]