by Rajat Sharma | Mar 11, 2015 | stocks, trading |
What is Volatility? Volatility in the context of stock markets is the amount of price change which a stock experiences over a given period of time (i.e. breadth or the difference between high-low). Put differently, if the price stays relatively stable, the stock has...
by Rajat Sharma | Mar 9, 2015 | behavioural finance, Consulting, legal |
I have long been convinced that not more than 0.1% of retail investors look at the (Draft Red Herring) Prospectus (the DRHP) before applying for shares in an IPO. As a lawyer (and an Attorney) who spent 6 years drafting these documents, this has never been a happy...
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...
