by Rajat Sharma | Nov 27, 2014 | trading |
Before I begin – Remember that while algorithms can enable high frequency trading, the scope for algorithmic trading is much wider. While all high frequency trading will use some form of computer programming, all algorithms are not written to execute only high...
by Rajat Sharma | Oct 16, 2014 | trading |
Arbitrage involves buying and selling the same asset simultaneously across two different markets to profit from the price difference. In the stock markets, arbitrage opportunity exists across the cash (delivery) and the derivative (F&O) market. In the most basic...
by Rajat Sharma | Oct 7, 2014 | option strategy, stocks, trading |
When to use: Put Backspread Option Strategy is used when the investor is bearish on the stock (i.e. when the investor expects the stock price to fall in the near future). How it works: In the put backspread strategy the investor sells 1 in-the-money put option; and...
by Rajat Sharma | Oct 7, 2014 | option strategy, stocks, trading |
When to use: Call Backspread Option Strategy is used when the investor is bullish on the stock (i.e. the investor expects the price of the stock to rise in the near future). How it works: Call backspread option strategy uses three option contracts of the same...
by Rajat Sharma | Oct 7, 2014 | option strategy, stocks, trading |
When to use: Short Synthetic Option Strategy is used when the investor is bearish on the stock in the near future (i.e. the investor expects the stock to fall in the near future). How it works: In a short synthetic option strategy you sell 1 call option and buy 1 put...
