Suhail Kazi writes in on the derivatives post with a few questions that I thought belong in a separate post. a) Is there a T+2 (or other) settlement period for futures similar to stocks? No; when you buy a future you own it. The “settlement” is only at expiry, and it’s in cash – that [...]

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(From my article at Yahoo) While derivatives have been called weapons of mass destruction and worse, they can provide alternative methods to participate in the markets. To a bystander, these instruments seem complex — and some indeed are so, with SEBI now requiring brokers to ensure that investors are financially capable of handling themselves before [...]

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The last two MarketVision Chronicles have some awesome (we’re modest) pieces for you. (You’ll need to register, and it’s Free!) Sep 12: Protecting the Downside Protecting the downside: Three Option Strategies When markets go down, it may be useful to protect your downside with a “hedge” of sorts. There are strategies to cover yourself against [...]

Posted in Credit Repair, Futures, MarketVision, Options Comments Off

Every regulatory body in the Indian market woke up recently and decided to allow Interest rate futures on treasury bills. SEBI said ok, and RBI said ok. What does this mean? The Indian government keeps borrowing short term money as "Treasury-Bill…

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Warning: Technical post (Repeated from the MarketVision blog) The 200-DMA setup went seriously against me – there was a slight attempt to take the 200 DMA again, in the morning, but the Nifty completely destroyed itself. I exited around 5480, it …

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A reader mails in: While reading thru the financial page of a newspaper I read this – "The rupee surged to a six-month high against the dollar on Thursday & closed at 44.20, up from a low of 52.06, 18 months back. With the dollar likely…

Posted in Credit Repair, Futures, RupeeFutures Comments Off

After SEBI standardised lot sizes, the National Stock Exchange has not acted to change the lot sizes, resulting in the unhappy situation of my not being able to take on a Tata Motors contract because it violates my position size limits. (Tata Motors is…

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I’ve been railing about the cash volumes in the market recently. With volumes reaching 12,000 cr. – lesser than most of 2007 – and as I recently tweeted, less than the daily volume of one share, Apple, in the US market. Our market has obviously s…

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SEBI has allowed trading of additional currency contracts apart from the currently traded USD-INR contracts. We’ll soon be able to trade the Euro, the Japanese Yen and the UK Pound (see Zip file) with the Indian Rupee. The contract specs are – 100…

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SEBI has now specified new lot size standards for all futures/options contracts: Price Band (Rs.) Contract Size Lot Size (No. of units of underlying) Value (Rs. lakh)…

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