Figyan

A resource site for beginners with easy to understand income tax, gst, and finance tutorials for mastering the basics and beyond.

Finance

What is Protective Put and how does this strategy work?

Updated on I By

In hedging, we have a number of strategies to limit the risk of losing profit and to minimize losses. In this article, we have discussed what is a protective put strategy and how they work in the option market.Protective put is a hedging strategy which uses put option contracts to reduce the potential risk of owning a stock. Protective put is used by those traders and … [Read more...] about What is Protective Put and how does this strategy work?

Call Option vs. Put Option: What is the difference?

Updated on I By

Futures and options are two derivatives that traders can buy and sell on a stock exchange. Option is a contract that allows the buyer or holder to have the right, but not the obligation to buy or sell an asset for a predetermined price at a specific date.We have two primary types of options: call options and put options.Both call and put options are traded in stock … [Read more...] about Call Option vs. Put Option: What is the difference?

What is Hedging and how does it work?

Updated on I By

Trading and investing in the financial market involves the risk of loss. But risk can be managed by using hedging techniques based on the type of asset and market conditions.Hedging is a risk management strategy in which you protect your future profit or limit losses of one asset by purchasing or selling another. Most market participants trading in options are using hedging … [Read more...] about What is Hedging and how does it work?

Domestic Institutional investors (DIIs): Who are they and what do they do?

Updated on I By

Domestic institutional investors, also known as DII, are those entities who make investments in the Indian stock market on behalf of businesses registered in India such as banks, insurance companies, mutual funds and large portfolio managers.In simple terms, domestic institutional investors (DII) are those entities who are registered in the same nation as the … [Read more...] about Domestic Institutional investors (DIIs): Who are they and what do they do?

What is market sentiment and how to measure it?

Updated on I By

Market sentiment is the collective attitude of traders, investors and other participants in the financial market. Market sentiment tells you how a group of traders and investors feels about the market. Market sentiment is also known as investor sentiment.We have two types of market sentiment in the financial market: bullish and bearish.Bullish means most of the market … [Read more...] about What is market sentiment and how to measure it?