Negotiation of options and National Exchange of Basic Products and Derivatives
We know that the stock market is a market where securities are bought and sold. It is a place for the long-term financing needs of the business and supports the activities of the business by providing the necessary liquidity. There are different types of investors on a stock exchange and they deal in different types of securities. It can be stocks, futures and options, and commodities. Also a stock market participant can be a speculator or a true long-term investor.
NCDEX is the abbreviation for National Commodities and Derivatives Exchange. NCDEX is an online commodity exchange in India. NCDEX was incorporated as a limited company on April 23, 2003 with the objective of providing an online commodity exchange. NCDEX is formulated by forward market commission. NCDEX is located in Mumbai and has more than 550 centers across India. NCDEX also offers an index of agricultural commodities. NCDEX has been in operation since December 15, 2003. NCDEX is a private company promoted by a consortium of institutions at the national level. The establishment of NCDEX has significantly boosted commodity trading on the Indian stock markets.
BTST is short for buy today sell tomorrow. We know that we cannot sell a share before we receive delivery of shares and our demat account is credited. In case we can make a big profit by selling the shares which we bought on the last day but have not been credited to our demat account, then BTST is helpful. Using the BTST scheme provided by some brokers, we can sell the shares that were bought yesterday. So, BTST is a short-term tool used to make a profit. Investors often use BTST to speculate when they expect the price of a security to rise and buy this stock to sell it tomorrow at a higher price. So, BTST helps book short-term profit for any investor. Today, most of the brokers offer the BTST scheme and investors take full advantage of it.
An important segment of the stock markets are futures and options. In futures and options, we can buy or sell the securities without actually owning them. Call is an option to buy shares at a specific time in the future. Call options are mostly profitable for the buyer when the underlying assets are rising. So a buyer of a call option always wants the value of the underlying asset to increase. Some of the examples of call options are intraday calls and clever calls. An intraday call is valid for a single day and the buyer exercises his right on that same day. Intraday calls are like day trading and do not carry the position over to the next day. Witty calls are calls about witty movement. The nifty indices will have a value and this value keeps changing second by second. This is how they are made in the movement of ingenious indexes.