Wondering whether to invest in Futures or Options? Here’s a guide for you – ​Understanding Markets

Wondering whether to invest in Futures or Options? Here’s a guide for you – ​Understanding Markets

Mar 11, 2024, 08:39:38 PM IST 1/13 ​Understanding Markets Futures and Options are two frequently used terms in financial markets. Here are the key differences between the two to help you choose the right derivative tool for your investments. ET Spotlight Special 2/13 ​Nature of Contract In Futures, it is obligatory to buy/sell at a … Read more

ETMarkets Trade Talk | Jaipur derivative trader strikes gold using simple IV formula

ETMarkets Trade Talk | Jaipur derivative trader strikes gold using simple IV formula

With dreams of becoming an auto engineer one day, Jaipur boy Arun Singh Tanwar got himself enrolled for a mechanical engineering course in the city but by the end of it he was convinced that his future lies elsewhere. His journey to the complex world of derivative trading began from discussions with a teacher who … Read more

NSE to add Aditya Birla Capital, Honeywell Auto to F&O segment

NSE to add Aditya Birla Capital, Honeywell Auto to F&O segment

Mumbai: The National Stock Exchange will add and India to the futures and options segment from the January series. The futures and options contracts on these two securities would be available for trading with effect from December 31, subject to fulfillment of eligibility criteria of quarter sigma computation cycle of December, the exchange said in … Read more

What are index futures & how to read forward signals from them?

What are index futures & how to read forward signals from them?

Equity indices are formed by a fixed number of constituent stocks to reflect investor sentiment in the economy. An index can also be sector-specific – Nifty Bank, Nifty Metal, Nifty FMCG etc. which reflect investor sentiment in a particular industry. Now, futures are derivative contracts that obligate the parties to transact an asset at a … Read more

Look, how smart investors are making money on futures-spot mispricing

Look, how smart investors are making money on futures-spot mispricing

Termed reverse arbitrage, the trades exploit spot-futures mispricing due to supply-demand factors like the recent MSCI rebalancing-induced heavy cash buying, or corporate actions that lead to heavy futures selling due to anticipated fall in cash market shares. Synopsis Normally, equity futures trade at a premium to the underlying spot price — called cash and carry … Read more

Conclusive break above 22,500 must for Bank Nifty to move higher

Conclusive break above 22,500 must for Bank Nifty to move higher

Bank Nifty futures recovered from its intraday low of 22,280 on Wednesday, spurred by buying at lower levels but 22,500 remains a strong resistance, shows weekly options data. Bank Nifty futures expiring on September 24 traded flat at 22,556 intraday. During the session, traders wrote 5 lakh more call options at the September 17 expiry … Read more