Exchange Traded Funds (ETF’s)

Exchange Traded Funds Overview ETF’s are known as exchange traded funds. ETFs are a collection of underlying securities bundled into one product that can be bought and sold in the exchange. They are managed by mutual fund schemes or index funds and generally offer investors a way to buy into a group of securities instead of justRead More

Trading Order Types

  Trading Order Types Want to trade a stock online but confused on which order type to use?  Understanding the differences between different order types would put an end to the confusion. Each order type has its own way of execution and can only be used a particular way. The basic inputs for an orderRead More

Securities Transaction Tax

Securities Transaction Tax – Overview As the name suggests itself, STT (Securities Transaction Tax) is one of the multiple taxes to be paid to the Central Government of India. STT is the tax payable on the transaction value of taxable securities. In other words STT is the tax applicable to the sale / purchase of Equities, Derivatives,Read More

Investor vs Trader

Investor vs Trader The basic idea behind sharing this blog is to make the thin line difference clear between the two interrelated and generally confusing terms “Investing” & “Trading”. One must have a view point before taking any step to land their capital into any kind of financial instruments like equities, bonds, government securities etc…Read More

Range Bound Options Strategies

Overview My previous blog covered various bearish views of strategies, implicating that an individual who is having a bearish view on the particular Stock/index can adopt an appropriate strategy to gain maximum profits with a fixed amount of calculated losses (if any).  Similarly, in this blog we will cover Range Bound Options Strategies. These are strategies where,Read More

Popular Options Strategies

Popular Option Strategies Definition of an Option As studied earlier, an option is a contract between two parties (buyer & seller), where one party (the buyer) pays the premium to another party (seller) for the right to buy or sell an asset/ underlying at a predetermined future date at a specific price. Unlike trading other derivativeRead More

Non-linearity of options payoffs

What is an Option? An option can be said to be a contract between a buyer and a seller, where a buyer pays the premium to the seller for the right to buy (call option) or to sell (put option) an asset at a predetermined future date (expiry date) at a specific price (strike price).Read More

Trading mistakes to avoid

Trading mistakes to avoid Trading mistakes happen to each and every one of us. You might have heard the phrase “Stock markets are a guaranteed way of making profits/money.” But how can someone say this and is it really true? This is a question on everyone’s mind. Easy – all a person has to do isRead More