Moneyness of an option refers to the relationship between the current price of the underlying asset and the strike price of the option. An option can be classified as in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM) based on its moneyness. In-the-Money (ITM) Option – Moneyness of an option An ITM option is one where the…
Order placement and execution are well-defined and regulated process in the Indian market exchanges. The process ensures transparency and fairness in trading and helps to maintain the integrity of the Indian financial markets. Here’s a step-by-step guide to understanding how orders are placed and executed in Indian market exchanges: In India, orders for buying and…
Underlying asset is a financial instrument or a physical commodity that serves as the basis for a financial derivative. In this article, let us delve deeper into the subject with examples. Introduction In the financial market, an underlying asset is a financial instrument or a physical commodity that serves as the basis for a financial…
Shares, also known as stocks, are a way to own a small piece of a company. When a company wants to raise money to grow or expand their business, they can do so by selling shares to people like you and me. When you buy a share of a company, you become a part-owner of…
SVB (Silicon Valley Bank) was founded in 1983 and it was initially focused on providing financial services to technology startups and venture capitalists in Silicon Valley. At that time, it was one of the first banks to provide specialized services to the tech industry. Silicon Valley Bank quickly gained a reputation for understanding the unique…
Options trading has been in vogue for more than a century. Over the Counter (OTC) custom options were available on commodities since the 1920s, while options on equities started trading on the Chicago Board Options Exchange (CBOE) in 1972. Options on currencies and bonds were introduced in the late 1970s, which were also traded OTC….