Below you'll find a list of all posts that have been categorized as “Uncategorized”
What is physical settlement and how it is different from cash settlement(Current sceario in jan 2019).
In physical settlement outstanding position(not squared -off) will be settled with delivery of the actual shares.In the current mechanism a person settles his outstanding position in CASH(Difference between the buy/sell price and final settlement price).
Theory Vs Practical.
In theory arbitrage is just a formula/mathematical equation where if Right Hand Side ≠ Left Hand Side then there is an Arbitrage and Profit making potential.
In Practice, Markets are more than just a Mathematical equation.There are Taxes,Regulatory challenges,Transaction costs, Opportunity costs that prohibits one to operate arbitrage in Markets.Different Markets have different practices.For example in Indian markets one cannot short sell equities overnight, margin structure in derivatives segment has very big opportunity & transaction costs. With all these factors arbitrage just remains a fancy word in theory,which is good and healthy for liquid markets.
What are the tricks and techniques of trading butterfly option strategies.How to choose strikes.What are the challenges you may face and many more in this article
