FAQ Page
Welcome to our FAQ page. Find answers to commonly asked questions about our platform, services, and policies. Whether you're a new user exploring our features or a seasoned trader seeking clarification, we've compiled a comprehensive list of frequently encountered inquiries. Learn more about account management, trading strategies, fees, and more. Our goal is to provide clear and concise answers to help you make informed decisions and maximize your experience with our platform. If you can't find what you're looking for, feel free to contact our support team for further assistance.
Any Questions? Answered
How to start trading?
To start trading, you need to open a brokerage account, learn the basics of the financial markets, and develop a trading plan. It's essential to start with a small investment and gradually increase your exposure as you gain experience.
What is Risk Management in trading?
Risk Management is the practice of identifying, assessing, and mitigating potential financial losses. In trading, it involves setting stop-loss orders, diversifying investments, and employing position sizing strategies to control the level of risk in a portfolio.
What are Equities and Derivatives?
Equities refer to stocks or shares representing ownership in a company, while derivatives are financial contracts whose value is derived from an underlying asset. Options and futures are common types of derivatives.
What is the Cash Market?
The cash market, also known as the spot market, is where financial instruments are traded for immediate delivery and settlement. It contrasts with the futures market, where contracts are agreed upon for future delivery.
What are Futures and Options?
Futures and options are types of financial derivatives. Futures contracts obligate the buyer to purchase, or the seller to sell, an asset at a predetermined future date and price. Options provide the buyer with the right, but not the obligation, to buy or sell an asset at a specific price before or at the expiration date.
What is Trading?
Trading involves buying and selling financial instruments, such as stocks, bonds, commodities, or currencies, with the aim of making a profit. Traders use various strategies and analysis techniques to make informed decisions in the financial markets.
What is Investment?
Investment is the act of allocating money or resources to an asset, venture, or project with the expectation of generating income or profit over time. It typically involves a long-term perspective and consideration of factors such as risk and return.
What are Commodities in the stock market?
Commodities are raw materials or primary agricultural products that can be bought and sold, such as gold, oil, or agricultural goods. Commodity trading involves buying and selling these physical goods or contracts representing them.
What is an Option Chain?
An Option Chain is a list of all available option contracts for a particular security. It includes information such as strike prices, expiration dates, and option types (call or put). Traders use option chains to make informed decisions about buying or selling options.
What is Historical Option Chain?
The Historical Option Chain provides historical data on option prices, volumes, and open interest for a specific security. Analyzing historical option chains helps traders understand past market behavior and make better-informed decisions.
What are OI, Volume, Change OI, LTP, Change LTP?
OI (Open Interest) is the total number of outstanding options or futures contracts that have not been closed or exercised. Volume represents the total number of contracts traded during a specified time. Change in OI, LTP (Last Traded Price), and Change in LTP provide insights into market activity and price movements.
What is Time Value in options?
Time Value, also known as extrinsic value, is the portion of an option's premium that reflects the time remaining until expiration. It diminishes as the option approaches expiration. Time Value is influenced by factors such as volatility and the time to expiration.
What is Intrinsic Value in options?
Intrinsic Value is the actual value of an option if it were to be exercised immediately. For a call option, it is the difference between the underlying asset's current price and the option's strike price. For a put option, it is the difference between the strike price and the underlying asset's current price.
What is Implied Volatility in options?
Implied Volatility is an estimate of future market volatility, as implied by the pricing of options. It is a key factor in determining an option's premium. Higher implied volatility generally leads to higher option premiums.
What is PCR (Put-Call Ratio)?
PCR is a ratio that compares the trading volume of put options to call options. It is used as a sentiment indicator. A high PCR may suggest a bearish sentiment, while a low PCR may suggest a bullish sentiment.
What are ATM, ITM, and OTM options?
ATM (At-the-Money), ITM (In-the-Money), and OTM (Out-of-the-Money) are terms used to describe the relationship between the option's strike price and the current price of the underlying asset. ATM options have a strike price close to the asset's current price, ITM options have a strike price favorable to the asset's current price, and OTM options have a strike price unfavorable to the asset's current price.
What is a Call option?
A Call option is a financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price (strike price) before or at the expiration date. Call options are used to profit from expected price increases.
What is a Put option?
A Put option is a financial contract that gives the buyer the right, but not the obligation, to sell an underlying asset at a specified price (strike price) before or at the expiration date. Put options are used to profit from expected price decreases.
What are Delta, Theta, Vega, Gamma, and Rho in options?
Delta measures the change in an option's price relative to the change in the underlying asset's price. Theta measures the impact of time decay on an option's value. Vega measures the sensitivity of an option's price to changes in implied volatility. Gamma measures the rate of change of an option's delta. Rho measures the impact of changes in interest rates on an option's price.