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How to Use Option Chain Analysis for Intraday Trading?

25-Nov-25 05:36PM

Options Chain Analysis (OCA) is a powerful tool that helps intraday traders understand market sentiment and identify accurate support and resistance zones. By analyzing Open Interest, Volume, Implied Volatility, the Put-Call Ratio, and key Option Greeks like Delta and Theta, traders gain a clearer view of how informed market participants are positioning themselves. This guide explains how to interpret option chain data, combine it with technical analysis, and apply risk-management practices to make stronger, more confident intraday trading decisions.

How to Use Option Chain Analysis for Intraday Trading?

Difference Between Call Option and Put Option

01-Nov-25 04:24PM

Options trading revolves around two core contracts — Call and Put Options. A Call Option gives the buyer the right to purchase an asset when they expect prices to rise, whereas a Put Option gives the right to sell when expecting a price fall. Both offer limited risk and strategic flexibility for speculation, hedging, and income generation. This guide explains how Call and Put Options work, profit and loss scenarios, breakeven formulas, and when to apply each strategy with real examples.

Difference Between Call Option and Put Option

NCFM Derivatives Market Trading: Key Topics to Focus On

29-Oct-25 01:31PM

The Derivatives Market plays a crucial role in modern finance, enabling hedging, speculation, and arbitrage. This guide simplifies everything you need to know for the NCFM Derivatives Market Trading module — from understanding Futures and Options to mastering key concepts like Moneyness, Greeks, Payoff diagrams, spreads, and hedging strategies. You’ll learn theory plus practical application, along with risk management and SEBI regulations. This structured explanation will help you clear certification exams and build confidence to trade professionally.

NCFM Derivatives Market Trading: Key Topics to Focus On

What is Hedging in Derivatives? A Complete Guide

11-Oct-25 02:52PM

Hedging in derivatives is a powerful risk management strategy that protects portfolios and businesses from price fluctuations. By using financial instruments like futures, options, forwards, and swaps, investors can offset potential losses without selling the underlying asset. This guide explains the fundamentals of hedging, practical examples across stocks, commodities, and currencies, and widely used strategies like protective puts, collars, and short and long hedges. It also covers the benefits, risks, and key considerations to help individuals and organizations hedge more effectively.

What is Hedging in Derivatives? A Complete Guide

What Is Long Build-up And Short Build-up In Stock Market?

29-Sep-25 11:58AM

Long Build-up and Short Build-up are essential indicators in Futures & Options trading that combine price action with Open Interest to reveal real market conviction. A Long Build-up (Price ? + OI ?) signals strong bullish sentiment backed by fresh buying, while a Short Build-up (Price ? + OI ?) indicates aggressive bearish positioning. Understanding these signals—along with Long Unwinding and Short Covering—helps traders confirm trend strength, anticipate reversals, and execute trades with higher confidence using data-backed strategies.

What Is Long Build-up And Short Build-up In Stock Market?

NISM Series 8 Mock Test - The Ultimate Guide To QNA

06-Sep-25 01:30PM

The NISM Series 8 Equity Derivatives Certification Exam is a crucial step for professionals in India’s derivatives market. While the syllabus can feel challenging, the right preparation makes all the difference. Our NISM Series 8 mock test provides a realistic exam environment, detailed solutions, and performance analysis to help you identify weak areas, improve time management, and boost confidence. With consistent practice and revision, these mock tests ensure you are well-prepared to clear the exam on your first attempt.

NISM Series 8 Mock Test - The Ultimate Guide To QNA

Best Forex Trading Platform in India 2025

29-Jul-25 12:33PM

Forex trading in India is growing, but legality and broker compliance are key. In 2025, only INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) are allowed via SEBI-regulated brokers on Indian exchanges. Our guide highlights the best platforms like Zerodha Kite, Angel One, ICICI Direct, HDFC Securities, and Upstox, detailing features, fees, and usability. By understanding legal rules and choosing SEBI-compliant brokers, traders can securely participate in India’s forex market and make informed trading decisions.

Best Forex Trading Platform in India 2025

What is Gift Nifty and How Does It Work?

25-Jul-25 03:41PM

GIFT Nifty is a USD-denominated derivative based on India’s Nifty 50 index, traded on the NSE International Exchange (NSE IX) in GIFT City, Gujarat. It replaces the SGX Nifty, consolidating offshore Nifty derivatives trading within India’s regulatory framework. With extended trading hours covering global markets, GIFT Nifty allows foreign investors, NRIs, and eligible entities to access India’s financial markets more efficiently. This move strengthens India’s position as a global financial hub while offering investors new opportunities for hedging and speculation.

What is Gift Nifty and How Does It Work?

7 Best Proven Derivative Trading Strategies - A Complete Beginner's Guide

17-Jul-25 01:29PM

Derivatives can seem complex, but with the right guidance, they become powerful tools for traders. This beginner-friendly guide breaks down what derivatives are, how options and futures work, and why traders use them. It also explores 7 proven derivative trading strategies—ranging from covered calls to bull/bear spreads—along with essential risk management principles. Whether you’re trading for income, speculation, or hedging, this blog offers actionable insights to help you trade smarter and manage risk effectively.

7 Best Proven Derivative Trading Strategies - A Complete Beginner's Guide

What is Open Interest in Derivatives?

01-Jul-25 04:28PM

Open Interest (OI) in derivatives reflects the total number of open, unsettled contracts in the market. Unlike volume, OI reveals market participation, liquidity, and trend strength. By analyzing changes in OI alongside price and volume, traders can better understand market sentiment and make more informed trading decisions.

What is Open Interest in Derivatives?

Derivative Trading: How to Start, Basics, Types, And Benefits

13-Jun-25 02:47PM

The modern financial market offers unique avenues for investors and traders with Derivative trading. There are a number of investors discovering how derivatives and options can either protect their existing portfolios or amplify their returns.

Derivative Trading: How to Start, Basics, Types, And Benefits

Growth Drivers of Derivatives

03-Jan-14 04:29PM

Over the last three decades, the derivatives market has seen a phenomenal growth. A large variety of derivative contracts have been launched at exchanges across the world. Some of the factors driving the growth of financial derivatives are:

Growth Drivers of Derivatives

Margins for trading in futures

13-Dec-13 03:12PM

Margin is the deposit money that needs to be paid to buy or sell each contract. The margin required for a futures contract is better described as performance bond or good faith money. The margin levels are set by the exchanges based on volatility (market conditions) and can be changed at any time. The margin requirements for most futures contracts range from 2% to 15% of the value of the contract.

Margins for trading in futures

Settlements of Futures contracts

16-Nov-13 04:13PM

Future contracts have two types of settlements, the Mark to Market (MTM) settlement which happens on a continuous basis at the end of each day, and the final settlement which happens on the last trading day of the futures contract. On the NCDEX, daily MTM settlement and final MTM settlement in respect of admitted deals in futures contracts are cash settled by debiting/crediting the clearing accounts of CMs with the respective clearing bank. All positions of a CM, either brought forward, created during the day or closed out during the day, are marked to market at the daily settlement price or the final settlement price at the close of trading hours on a day.

Settlements of Futures contracts

Hedging

13-Nov-13 05:19PM

Many participants in the commodity futures market are hedgers. They use the futures market to reduce a particular risk that they face. This risk might relate to the price of wheat or oil or any other commodity that the person deals in. The classic hedging example is that of wheat farmer who wants to hedge the risk of fluctuations in the price of wheat around the time that his corp is ready for harvesting by selling his corp forward, he obtains a hedge by locking to a predetermined price

Hedging