Latest Tranding Blog on Trading and Mutual FundTopics

As a hedging strategy, options trading allows traders to buy or sell an underlying asset at a stated price on a particular future date. Options trading involves speculation based on various factors, including the price sensitivity of the underlying asset. Derivative traders buy or sell an option after analyzing future moves of the underlying asset. They need to determine the perfect time to take and exit the positions based on option trading strategies.  Determining the option price -the premium - should also be well-strategized. It is the price at which you are ready to enter an option. The premium is primarily based on intrinsic value - the price difference between the current price and the strike price of the underlying asset. Traders subtract the strike price from the current price to determine the premium. A higher premium means lower returns.  Talking about expiry, an option can have a short-term or long-term expiry. A longer expiration is useful.  Sign up for your ...

The advent of demat accounts has brought a revolutionary change in stock trading in India. Tech-savvy millennials are more attracted to the stock market as online demat, and trading accounts have made the process seamless and convenient. But lack of technological know-how and financial literacy can leave many investors vulnerable to fraud and mismanagement. While the regulators - the Securities Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) keep working in the interest of investors, investors also need to take cautious investing steps. One of the concerns that came into the picture is the stockbroker default. The main reason for such defaults is the misuse of investors' financial assets and funds. Many times brokers try to take upfront payments unnecessarily. It can be advance payments for commodities that are going to arrive. They may take Power of Attorney (PoA) from the investors for trading and misuse their securities for their benefit.  Even though your fin...

As an investor, you should be equipped with the concepts of online investing and trading in the stock market. One of these concepts is the depository system in India. The stock market allows the trade of securities in the dematerialized form only. Therefore, a Demat account is a mandatory account. Your Demat account safeguards your securities with a 'depository' authorized by the Government of India. They interact with investors and offer their Demat services through registered participants called Depository Participants (DPs). No individual can approach a depository directly to open a Demat account . In India, two central depositories, National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) operate under the regulatory framework of the Securities Exchange Board of India (SEBI). They both provide the same Demat services.  If your broker is offering Demat services of NSDL with registration, you will be an NSDL Demat account holder. You are a benefi...