Market participants use several financial measures to understand market sentiment before taking a position. Put Call Ratio is one such financial tool. This metric helps investors gauge whether the market is leaning toward a bullish (rising) or bearish (falling) sentiment.Let’s break it down in simple terms so you can grasp how it works and how you can use it in your own … [Read more...] about How to use Put Call Ratio (PCR) in option trading?
GST TDS Rules, Eligibility, Calculation, and Filing — Quick Summary Guide
TopicSimple ExplanationMeaning of GST TDSGST TDS means a government body deducts a small part of tax (2%) while paying a supplier and deposits it directly with the government.Purpose of GST TDSIt helps the government collect tax on time and increases transparency in payments.Who Deducts GST TDSMainly government departments, local authorities, PSUs, government agencies, and … [Read more...] about GST TDS Rules, Eligibility, Calculation, and Filing — Quick Summary Guide
What is a Bear market? History, Causes & Investment
A Bear market happens when the broad market index falls by 20% or more from the high over a few months due to negative investor sentiment. 20% is considered as a minimum threshold limit.The opposite of a bear market is a bull market.In a bear market, we may have occasional small rallies but the general trend will be downward. Market participants keep selling investments … [Read more...] about What is a Bear market? History, Causes & Investment
What is time decay in options and how it can impact trading?
Value of an option contract decreases as it nears the expiration date. This decrease in value is described as Time decay, which is technically also called Theta. As an investor or trader you should keep in mind that the expiration date of a contract impacts option prices.Out of the money (OTM) call and put options are more affected by Theta factor than In-the-money (ITM) … [Read more...] about What is time decay in options and how it can impact trading?
Understanding Open Interest (OI) in the Derivatives Market
Open Interest (OI) is a fundamental concept in the derivatives market, reflecting the total number of outstanding contracts that have not yet been settled. By understanding OI, traders can gauge market sentiment and liquidity effectively.What is Open Interest?Open Interest refers to the total number of active contracts (options or futures) that remain unexercised or … [Read more...] about Understanding Open Interest (OI) in the Derivatives Market