Moneysukh

The stock market is such a complex place where millions of different types of transactions take place every second. In such a highly complex market, there are chances of mistakes and errors that can be happened to anyone, anytime anywhere while executing transactions. Similarly, sometimes traders mistakenly put the sell order instead of the buy order or vice versa because of complex or large trades. And when such mistakes occur, corrections are made to fix such mistakes. Unwinding is part of such trade error correction that we will discuss today. Long Unwinding in Stock Market Before we discuss other things about Unwinding, do you know what is long unwinding in the share market? Let’s make it clear long unwinding meaning in the stock market. “Unwinding is the process of closing a trading position in the stock market, which means when a  selling position  is made to correct the transaction error, like sold stocks bought again. The unwinding is a process where participating in a...

  The stock market keeps moving in a certain direction, but it does not necessarily go upwards or downwards, it can consolidate or move sideways for many trading sessions. Such muted market movement is not suitable for trading as there is less volatility and no room for intraday traders to make options in the stock moves in a volatile or single-direction market movement. In a sideways market, you can trade alternative techniques that may give better possibilities for buying and selling even supposing the market is walking within the consolidation segment. Though buying and selling inside the  options marketplace  is riskier than the cash marketplace, in case you change with the proper method it could provide you with high returns in short-time period trading. As someone said, there is a high risk there would be also chances of higher returns. However for different market conditions such as Bullish, Bearish or sideways anyone can use the combination of option strategies or...

The stock market keeps moving in a certain direction, but it does not necessarily go upwards or downwards, it can consolidate or move sideways for many trading sessions. Such muted market movement is not suitable for trading as there is less volatility and no room for intraday traders to make options in the stock moves in a volatile or single-direction market movement. In a sideways market, you can trade alternative techniques that may give better possibilities for buying and selling even supposing the market is walking within the consolidation segment. Though buying and selling inside the options marketplace is riskier than the cash marketplace, in case you change with the proper method it could provide you with high returns in short-time period trading. As someone said, there is a high risk there would be also chances of higher returns. However for different market conditions such as Bullish, Bearish or sideways anyone can use the combination of option strategies or you can say buyin...

Delta is another key member of the option Greeks you need to understand if you are interested to trade in the   derivatives   market. The option premium price is highly sensitive towards to various factors, hence you need to understand the quantum and intensity of this sensitivity so that you can choose the right option contract to trade with the right strategy. Just like other members  Gamma, Theta, and Vega,Delta  also helps to measure the risk in  options trading . This can be a powerful tool to manage the risk in options trading and help you enter into the right trading strategy. Let’s find out what Delta is, how it works and how you can use in options trading with  delta-neutral option trading strategies. What is Delta in Option Trading? In simple words, Delta is the measurement tool with the value that shows how much an  option price  is sensitive towards change in the price of the underlying security or market. A delta in options represents...

  A stock market is a volatile place where stocks move abruptly and sometimes within a few minutes, surge or goes down making some traders lose their money, at the same time few traders make a huge amount of money due to such unexpected moves. The volatility in the market, individual stocks, sudden negative or positive news or various other reasons trigger such stocks at very high levels. To control such stock price changes stock exchanges have created the  circuit breaker  that stops trading. What are Circuit Breakers in Stock Market? A circuit breaker is a mechanism created by the stock exchange that has been set up for the  stock market  to safeguard investors from such unexpected highly volatile changes. Stocks or indices are put into the circuit breaker category with certain upper and lower circuit limits that get triggered when the price of levels reaches that level. Circuit breaker triggers when  stock price  touch either upper or lower levels s...