Today, non-delivery based trading on the stock exchanges ranges from 70-75% on a daily basis. This is largely driven by intraday traders who look to …
Month: July 2018
Why short strangles can be risky?
If you have been in the derivatives market for some time, you would have surely heard the now famous story of how Nick Leeson brought …
What is the link between the ROE and the P/E ratio?
Have you ever wondered why is it that companies with high ROE tend to have higher P/E Ratios? Take the case of sectors like FMCG …
How quick ratios give a better picture of a company’s health…
Working capital management in a company is all about a trade off between the current assets and current liabilities of the business. Typically, current assets …
Why different stocks have different lot sizes in F&O
Do you know the basic difference between futures and forwards? Futures represent an improvement over forwards in two ways. Firstly, futures are traded on a …
Why do option buyers lose money in the markets
Did you know that globally nearly 80-85% of the options expire worthless. That means; the buyer of the option loses money on the option while …
10 things to check before buying a small cap stock…
Mid cap stocks and small cap stocks have had a dream run in the last 3 years. To be more precise, the run in mid …
Why risk and uncertainty are different in markets?
We often use the terms risk and uncertainty interchangeably. Most investors equate risk and uncertainty when it comes to investments. In reality, there is a …
8 services you must insist your broker to provide
So, you are finally planning to make your foray into equities and are planning to open your trading account and demat account with a broker. …
How to evaluate the working capital of a company?
When we talk of company evaluation, most of us tend to get caught up in the big picture. Capital structure, fixed assets investment, borrowings, net …
