Frequently Asked Questions

What's a call option?

Options can be financial contracts that are drawn on an underlying asset. This could be stocks, commodities or currencies. Call options are a right to purchase without an obligation. You can execute an option contract only when it is profitable. …


WHAT IS THE COST OF CARRY RESULTING IN BULLISHNESS / BEARISHNESS

Open interest and change in CoC are indicators of wider sentiment about the stock or index. Open interest refers to the number of open positions within a contract. An increase in CoC is indicative of bullish accumulation, while a fall …


Is it possible to reduce the cost of shipping?

Yes. This happens when the stock is expected pay a dividend or when traders aggressively execute a "reverse arbitrage", which involves selling futures and buying spot. Bearish sentiment is influenced by negative cost of carry.


How it works?

CoC is often used by traders to gauge market sentiment. Analysts see a significant drop inCoC as a sign of upcoming falls in the underlying. The CoC of Nifty futures' benchmark index fell by almost half a week ago and …


How to interpret this?

CoC is an indicator of market sentiment. A low CoC indicates a decline in the value or vice versa.


How to calculate CoC

Theoretically, Future price fair value=Spot Price+Cost of Carry-Dividend Payout Cost of Carry = Difference between the futures and spot price at any time CoC is calculated as an annual rate and expressed in percentage values. The real-time CoC values are …


What does Cost of Carry mean?

The cost of carrying or CoC, is the expense incurred by an investor to hold certain positions in the market until the futures contract expires. This cost includes the risk-free interest rate. The CoC does not include dividend payouts from …


How one can apply in IPOs?

Online applications make it easier to apply for an initial public offer. You should be familiar with the basics of investing before you apply. Funding is the first thing that matters. You will need to have funds ready, regardless of …


Things to consider before investing.

1. You are directly affected by the fortunes and performance of the company if you bought an IPO. Your direct influence on the company's success or failure is yours 2. This asset is the one that has the greatest potential …


Should someone invest in an IPO?

It can be difficult to decide whether or not you want to invest in an IPO of a relatively young company. In the stock exchange being skeptical is a positive attitude. Background checks Because the Company is only going public …


what are the types of IPO?

For new investors, it may be confusing to understand all the terminology surrounding an initial public offering. There are two main types of initial public offerings (IPOs) offered by companies. Fixed Price Offering It is very simple to offer a …


Why is IPO offered by a company?

. An IPO is a money-making venture. An IPO is a money-making exercise. 2. Increased liquidity is achieved by trading stocks on the open market. This opens up the possibility of employee stock ownership plans such as stock options or …


How an IPO is offered by a company?

Before a company goes public, it hires an investment bank for the IPO. The underwriting agreement outlines the financial details for the IPO. They file the registration statement to the SEC along with the underwriting contract. SEC reviews the information …


Define an IPO.

IPO is Initial Public Listing. This is the process whereby a privately-held company becomes publicly-traded by offering its shares for the first time to the public. An IPO is a public offering of shares by a private company with a …


How can I choose UPI to pay for public issues?

An option to enter your UPI ID in order to pay the IPO application has been added. You can also contact any Intermediary to get more information.


When the UPI was made available as a payment option for public issues?

UPI is an available payment method for all public issues that Red Herring Prospectus has been filed after January 1, 2019.


When was UPI made available as a payment option for public issues?

UPI is an available payment method for all public issues that Red Herring Prospectus has been filed after January 1, 2019.


How to create a UPI ID in BHIM APP - First Time User (example)?

Step 1 - Download the BHIM App from Google Play Store or Apple App Store and install it Step 2 - Choose your preferred language Step 3 - Choose a SIM that has a registered mobile number with your bank …


Which customers are eligible for UPI?

To place orders in IPO's, all customers (except Trinity clients) will need UPI ID.


What are the benefits of UPI?

Simplify and increase efficiency Eliminate manual intervention during various stages Members can operate with ease