Learn with ETMarkets: Who are the Hedgers and Speculators?Hedging is the act of managing price risk where the objective is to protect oneself against a loss. Speculation is basing a buying or selli...
FIIs cut bullish bets on Bank Nifty, Nifty. What does it signal?The open interest of the active Bank Nifty futures declined by 1.98 lakh shares to 13.37 lakh shares as the index closed down half a percen...
Learn with ETMarkets: What is Hedging?For hedging using futures, the hedger can take a position in the futures market and lock-in prices. For instance, a cotton farmer who faces...
Who can trade in stock futures and what are the pros and consThe sole purpose of futures trading is to benefit from price movement on either sides.
What are derivatives and how do they work?Derivatives are contracts that derive values from underlying assets or securities.
Understanding PCR in commodity optionsThe futures value, the underlier for the option, was ₹37886 per 10 gm.
MCX gold open interest spikes to 25 tonne as volatility spiralsTurnover in MCX Gold (all variants) stood at Rs 11,447 crore which was at a three-year high .
Aluminium, zinc deliveries off to a robust start on MCXA Sebi official said delivery results in a better speculator hedger mix and prevents “excessive” speculation.
What to make of the rupee’s growing strength? Don’t take it at face valueSecondly, there is no statistical significance to rupee’s cyclicality.
Futures traders exploit mispricing in gold spreadsThey will earn maximum if mean reversion takes place.
Open interest and its significance for tradersRising OI accompanied by rising price is indicative of bullish trend.
Learn with ETMarkets: A look at how front month options can be usedSpeculators, hedgers, banks, etc trade on currency derivatives. Speculators take on the risk that hedgers want to insulate themselves from.
Hedgers’ share still low in turnover of commodity futures exchangesHedging in farm products based on hedge limits sanctioned by an exchange stood at 0.3 per cent as a percentage share of turnover on NCDEX.
- Increased Open interest limits to deepen markets
The recent increase in broker-level open interest limits by the regulator will help attract more actual users to commodity futures exchange...
More farm products may find place in early delivery systemThe early delivery system is likely to be extended to other farm commodities.
- Futures markets can be of help to genuine hedgers
Trading in some grain became so chaotic that the Minneapolis grain exchange was forced to shut down for several days.
- Big cos may get more room in futures
According to rules laid down by the FMC (Forward Markets Commission), companies will have to declare their commercially sensitive data on p...