Friday 31 October 2014

HDIL STRANGLE STRATEGY

BUY HDIL 95 CALL @ 1.4
BUY HDIL 70 PUT    @ .90
COST=2.3
RISK PER LOT =9200
RETURN=UNLIMITED

UPPER BREAK GIVEN POINT=97.3
LOWER BREAK GIVEN POINT=67.7
PAY OFF TABLE:

Tuesday 28 October 2014

Types of derivatives available in share markets

There are different types of derivatives available in share markets which are recognized as financial instruments. Share market experts accept derivatives as contracts between two or more parties (one type of security) that are practiced for trading or for share markets. The fluctuation of price and value of a derivative totally depends upon one or more financial assets.
In western developed economies there are various types of derivatives that are introduced much before. In National Stock Exchange of India, types of derivatives are used almost 10 years back. A few years after its released date in NSE and BSE, derivatives occupied an important financial platform to earn profit for shareholders or traders. Now these different types of derivatives are integral parts of Indian share markets.