Page 3 - Futures & Options

NSE to launch options on WTI Crude oil, natural gas futures contracts

The National Stock Exchange (NSE) on Friday announced that it will launch options linked to NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment. This came after the exchange received approval from the markets regulator Securities and Exchange Board of India (Sebi) to launch these contracts. The addition of options on futures contracts will further boost NSE's product offering in the overall commodity segment. These contracts are designed to provide the market participants with a more efficient way to manage their commodity risk, the exchange said in a release. "It gives us immense pleasure to inform the market participants that NSE is planning to launch Options on NYMEX WTI Crude Oil and Natural Gas futures contracts in October 2023. "We would like to thank all the market participants for showing their trust & confidence in the NSE WTI Crude Oil and Natural Gas Futures contracts, and we are confident that the same will continue with the ...

RBI asks some banks to stop taking fresh arbitrage positions in NDF market

"The RBI has told us not to take new outright arbitrage positions," a senior trader at a private sector bank said

ADTV for equities cash market segment hits a 21-month high in July

F&O volumes log new highs, increase by 2.8 times over a year earlier

Sebi mandates risk disclosures for F&O trades, to protect retail investor

A study published by Sebi in January showed that only one in 10 F&O traders turned out to be profitable during FY22

The real gainers from F&O 'casino'

Whether they make or lose money, traders have to incur transaction costs, including brokerage, exchange fees, turnover fees, and securities transaction tax, etc.

Gold may take a breather around Rs 56,850; Trading range narrows for Silver

The overall bias for Gold remains bullish, with near support seen at Rs 55,900 level. The Bollinger Bands indicate a likely trading range of Rs 2,000-odd points for the MCX Silver March futures.

T+1 settlement of all F&O stocks pushed to Jan 2023, transition at one go

However, the timeline issue for many FPIs remains, as the relaxation still compels them to book forex during non-market hours

Sebi revises threshold for adjustment in derivative contracts post dividend

Capital markets regulator Sebi on Tuesday came out with new adjustment rules for dividends in Futures and Options (F&O) scrips. "It has been decided that the adjustment in derivative contracts shall be carried out in cases where dividends declared are at or above 2 per cent of the market value of underlying stock," Sebi said in a circular. The threshold has been revised from 5 per cent and above to 2 per cent and above. The new framework will be applicable from Wednesday. Currently, dividends that are below 5 per cent of the market value of the underlying stock are deemed ordinary dividends and no adjustment in the strike price is made for such dividends. For extra-ordinary dividends, which will be at and above 2 per cent of the market value of the underlying security, the strike price would be adjusted. In case of declaration of "extra-ordinary" dividend by any company, the total dividend amount (special and /or ordinary) would be reduced from all the strike prices of the option

Decoded: What is F&O and how is it different from equity trading?

Futures and Options are derivative contracts which allow a market participant to purchase and sell a stock or index at a specific price and on a future date. Let us find out more about them

Why the need to put up additional margin makes futures trading risky

Not only must your call be directionally right, the price movement must occur within a stipulated time frame for you to make money

With nickel, MCX launches third base metal derivatives on its platform

The exchange already offers base metal options on futures in copper and zinc and option contracts in gold, silver and crude

Supreme Inds, Balrampur, NBCC gain up to 6% on F&O inclusion from Dec 31

he move expected to boost participation as investors and institutions can hedge underlying positions in the stock.

Bull Spread Strategy on Pidilite Inds by Nandish Shah of HDFC Securities

Pidilite Sept futures have seen long build up, the open interest has increased by 18 per cent with 5 per cent rise in price.

Paytm Money considering applying for MF licence as an asset manager: CEO

Company clocked over 20 million annual direct mutual funds transactions with assets under management of over Rs 5,000 crore, says Varun Sridhar

F&O volumes likely to decline 30% on tighter peak margin regulation

Retail participation in the F&O segment - especially that for options writers on expiry days - has already been impacted owing to these norms, which became effective from December 1

New margin norms: F&O turnover at record high in December, shows data

Retail participation slides 15-20% on weekly expiry days

Volumes in F&O segment to shrink as peak margin rules kick in today

Zerodha expects F&O volumes to be impacted by 20-30%; new norms aimed at discouraging leveraged bets

MCX offers chance to exit trading if crude oil price slips into negative

Asking members and clients to be extra cautious while dealing in crude oil, the exchange has said trading will be halted if the trading price falls to Re 1

Sebi directs exchanges to implement a framework to monitor margins

The move is likely to have a wider impact on volumes in the futures & options (F&O) segment, in which leveraged intra-day trades had been a common practice

Sensex F&O volume touches new record, turnover crosses Rs 1,495 cr

The exchange attributed the momentum to the increasing traction in equity derivatives following the implementation of interoperability