Fin-Holix

My friend Payal asked me few Qs about Derivative Options, I promised her that I will answer her Qs because I don’t have any other ‘Option’. For a while forget Derivative Options Let’s understand what option is .. Option gives you a chance to exercise it , It a chance but No Compulsion   Always remember, Option will be always executed if and only if it is beneficial to the executor When it comes to Derivative Options, The Value is derived by something it can be index or company stock . The Option doesn’t have its own value as value is derived (backed) by something. This gives birth to an important concept Equity Derivatives - Equity Derivatives are in 4 types 1.        Futures 2.       Options 3.       Swaps 4.       Forward We can actually write series of articles on each one of the above , but let’s restrict our self to Options You can take ...

Yes, but with a bit of caution. If I would have been in your position and with 3.5 lac cash in hand I would have divided them into several chunks of (20%-30%) of the total and would have invested in a systematic manner. Current scenario is uncertain as Corona Virus has just entered India and we are still in Stage 2. Whatever fall we have seen in the market is the response to the global factors. So i would say that the local panic is not yet factored in and NIFTY is yet to correct. Looking from an investor’s point of view I can completely get your psyche of entering at this mouth watering level. But as they say “All that Glitters is Not GOLD”. NIFTY and its constituents may look mouth-watering but there is a risk of downside in the market. Reasons: 1. We are amidst a health crisis 2. The economic impact of this deadly virus is yet to be measured 3. The disruption it has caused to the sectors plus the global supply chain has not been equated yet. So the smart thing to ...

Stock Market is not a Rocket Science!!! It is just a logical flow of activities which anyone can understand In this post we are going to learn about how simple Economics works in stock market and Price & Volume, 2 simple factors run the whole market When I was in junior college , I studied Economics for the first time ,from then till date I am learning it . I used to hate it because of graphs , typical theories and so on. But now after learning Accountancy, Finance I understand how Economics is important Let us understand stock market mechanism with Economics Forget stock market for 2 mins and take our daily life example   Its 9pm in the evening, you reach out to the vegetable market. You know that vegetable price viz around Rs.40. Vegetable is a perishable item and hence the seller also want to clear the stock by End of the day. You start bargaining with seller, if someone not agrees with your price, you shift to other one. Here, you can switch to other...

Happy Gudhipadwa to all , It will be not so good if I won’t acknowledge Corona virus in the beginning of this post. This virus who cannot be even seen by naked eyes has created fear in 6 Billion people and has forced every country for compulsory lock down on this planet. Fin-Holix authors are enjoying (?) their exam leave since last 20 days. But, now we are actually irritated and worried about the situation. We are sitting at our home quietly, contributing to the nation also  Watching daily red bloodbath in the stock market. But, Corona doesn’t stop here; One small but important Question , How will be Indian Economy after Corona Disaster ??? Let us address this one by one 1.       Disturbed Economic Cycle In third week of March majority of the workforce is sitting at home / opted for Work from home, since the global operations are shrunk, many manufacturing & service industries are in trouble. Understand this with an Example - ...