Derivatives

Understanding on Margin Shortfall Penalty

Understanding on Margin Shortfall Penalty   As per SEBI (Securities Exchange Board of India) rules, a margin shortfall penalty is levied on the overnight position held in the trading account without sufficient margin. In our previous article, we explain the margin system in derivative trading, once read the article before getting into this. If you …

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Risk Management In Futures and Options Trading

Risk Management In Futures and Options Trading     Most of the derivative market traders, don’t have a clear picture of margin money and how it’s different from the futures and options writing. Let us try to explain with examples. Remember one thing, the future margin is always higher than the option writing. If you …

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How To Use Implied Volatility In Option Trading

How To Use Implied Volatility In Option Trading     Recently, one of our fincareplan readers asked a question related to option premium. It was a little complicated but we try to answer his question. The question was, he took the Nifty 13400 call option at the premium of 200 Rs on 9th December 2020, …

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Basic Concept of Open Interest and Volume

 Basic Concept of Open Interest and Volume     Derivative traders have confused about the terms open interest and volume of the particular stock, let me try to simplify the answer in a simple way. Before going to analyze the open interest data. First, clarify the volume. Volume plays a crucial role in technical analysis …

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PEAK MARGIN RULES FOR FUTURES AND OPTIONS BY SEBI

PEAK MARGIN RULES     Peak Margin Rules, the capital market regulator Securities Exchange Board of India (SEBI) has come up with new regulation in the upfront margin system in cash and future & options segment. In November 2019, SEBI had announced the peak margin regulation for the intermediaries in the capital market but none …

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INDIA VIX VOLATILITY INDEX SHARE PRICE FOR OPTIONS TRADERS

INDIA VIX VOLATILITY INDEX SHARE PRICE ANALYSIS     Most of the option traders familiar with the term India VIX, but don’t know about the function of the volatility index. Here we can simplify the calculation for a better understanding of our fincareplan readers. We have a basic understanding of derivatives markets in our previous …

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DERIVATIVES MARKET – FUTURES AND OPTIONS – RULES

DERIVATIVES MARKET – FUTURES AND OPTIONS – RULES     In our previous topic, you must be wondering about futures and options in the derivatives market. However, these benefits are not applicable to all securities. You can trade only specified securities that are on the F&O stock list. There are more than 170 securities on …

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