ritheshmahajan, Author at Article Point

All you need to know about trading in oil futures

The world of market investments is rather complex and goes beyond basic investments like buying and selling shares, mutual funds, government bonds and other similar money market investments. Advanced traders deal in several different types of futures and options contracts. Futures contracts essentially refer to a type of derivate contract under which investors and traders agree to buy or sell a predetermined quantity of an underlying asset at a predetermined price on a fixed date in future. This type of contract helps the investor evade the risks associated with the fluctuation of the price of the underlying asset. Here’s all you need to know about oil futures. What are oil futures and how to trade in them? As we all know, every economy needs crude oil to keep functioning smoothly. Wars are waged and countries are annexed for the sake of their oil resources. As such, oil is a rather…

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4 things you need to know before you begin with option trading

Trading in options is vastly different than regular share trading. The stakes involved are different as are the rewards associated with this kind of trade. As any advanced trader knows, investing in options is majorly about customisation. The rewards reaped from investments can be rather high, just as the risks are. Most investors looking to trade in option start out by looking at option trading tips, but the fact is that there are a few things you should know before you begin investing in options. They are as under. Trading in options is all about customisation As mentioned above, option trading involves a lot of customisation. Generally, option traders are also regarded as self-directed investors who typically, work directly with their financial advisors. The financial advisor helps you manage your options trading portfolio. While the financial advisor offers the guidance, it is you, the investor, who fully controls all trading…

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7 Advantages You Can Reap Through Your Demat Account

A demat account is one of the most important tools you need as a share market investor. This account offered by Depository Participants (DPs), in association with the chief depositories in India; the National Securities Depository Limited (NDSL) and Central Depository Services Limited (CDSL); allows you to easily manage all your share market instruments. There are several benefits of dematerialisation that investors can reap upon opening this account. But what exactly is this account – how is demat defined and what are those advantages? Read on. Demat account definition Demat is short for dematerialisation i.e. converting your physical share market investment securities into electronic securities. Earlier, when one would buy shares, the company would allot physical share certificates. If one wished to redeem the shares, one had to provide those physical certificates to liquidate their investments. But in 1996, the SEBI eliminated this time consuming process and replaced it with…

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Thinking about investing in stocks? Here’s a detailed guide for beginners

Many years ago, share market investments were considered risky. They were often compared to a gamble in which one could stand to lose all their money. This, unfortunately, is still a popular notion among amateur investors. Most new investors consider stock trading a risky bet. But the fact is, today, you have data, analysis and research reports, which allow you to make informed investment decisions. With the help of these tools, you truly book good profits and gradually create a corpus. If you are just entering the share trading world, this beginner’s guide is for you. Stock market investments for beginners – a handy guide If you are investing in the stock market for the first time, there are some things you need to know. A good place to start learning about investing in stocks for beginners is through research, trading accounts and online courses. You also need to understand…

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Copper and gold futures explained

When it comes to the share market, there is no dearth of investment instruments. Investors can purchase shares, mutual funds, government bonds, and several other types of money market instruments. As your knowledge and investment appetite increases, you can consider expanding your investment horizons and begin trading in commodities. Commodity trades involve the trade of commodities and generally revolve around futures and options trading. Copper and gold futures are two types of commodities, among several others, traded in this market. But before we can understand the trade of the above mentioned commodities, let’s learn what future and options trading entails. Futures and options explained Futures and options are simply financial contracts that investors use to profit from their investments. Buyers and sellers enter into futures and/or options contracts to hedge or safeguard their investment. Those who invest in options have the right, but not obligation to buy/sell commodities at a…

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A beginner’s guide to investing in the stock market

New investors often wonder about how to invest in stocks. Stock trading today has become one of the fastest ways to create a corpus. More and more young investors are learning the importance of stock trading and viewing it as a better option for creating savings as opposed to conventional means of investments such as recurring or fixed deposits, since the return on investment here is faster and better. However, like all investments, stock trading also has a certain element of risk attached to it, which is why you must consider your risk appetite before you make your investments. Truly, investing in stocks for beginners can be quite a challenge. So, here are some important things you need to know. You need a demat account Whether you wish to trade in stock, bonds, mutual funds, or any other market instruments, you need to open a demat account. It is a…

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