The Reserve bank of India (RBI) uses repo and reverse-repo rate to control the money supply in India under the liquidity adjustment facility (LAF).Not only the Reserve Bank of India, almost all central banks use it as a key tool to manage money supply and inflation. The Federal Reserve also enters into a repurchase agreement to regulate money supply in the US.What is a … [Read more...] about What is repo and reverse-repo rate, how is it used by RBI?
Reserve Bank of India (RBI): What it does and how it works?
The Reserve Bank Of India, often called the RBI, is the central bank of India. Since 1935, the Reserve Bank of India (RBI) has played a crucial role in the economy. RBI is one of the most influential financial institutions in the world.The duties of the Reserve Bank Of India (RBI) includes maintaining financial stability, supervising and regulating banks, conducting … [Read more...] about Reserve Bank of India (RBI): What it does and how it works?
How equity futures and options are traded in the Indian stock market?
Currently we have 183 securities available to trade in the futures and options segment of NSE. Both call and put options are available to trade in European style.The National stock exchange (NSE) defines the contract with all the characteristics such as market lot and expiry date. After introduction of equity derivative contracts, it will be available to trade up to the … [Read more...] about How equity futures and options are traded in the Indian stock market?
How does index futures and options work in the stock market?
An index tracks and measures the price of a collection of stocks. For instance Nifty 50 tracks and measures the price of top 50 listed Indian stocks.As an investor or trader, you can not directly invest or trade in an index. Therefore, we have index futures and options which can be bought and sold. These index future and option contracts derive their value from the … [Read more...] about How does index futures and options work in the stock market?
How Nifty Financial Services (Finnifty) Index Futures and Options are traded?
Finnifty futures and options contracts are traded on our National Stock Exchange (NSE). Futures and options are derivative contracts which derive its value from an underlying asset. In the case of Finnifty, the underlying asset is the Nifty Financial Services Index.Nifty Financial Services (Symbol: FINNIFTY) index consists of the following 20 stocks from banking and … [Read more...] about How Nifty Financial Services (Finnifty) Index Futures and Options are traded?