Thursday 6 February 2014

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Wednesday 5 February 2014

PUT CALL RATIO

The put-call ratio is a popular tool specifically designed to help individual investors gauge the overall sentiment of the market. The ratio is calculated by dividing the number of traded put options by the number of traded call options. As this ratio increases, it can be interpreted to mean that investors are putting their money into put options rather than call options. An increase in traded put options signals that investors are either starting to speculate that the market will move lower, or starting to hedge their portfolios in case of a sell-off. 
An increasing ratio is a clear indication that investors are starting to move toward instruments that gain when prices decline rather than when they rise. Since the number of call options is found in the denominator of the ratio, a reduction in the number of traded calls will result in an increase in the value of the ratio. This is significant because the market is indicating that it is starting to dampen its bullish outlook. ,.....

Saturday 1 February 2014

HOW TO CHOOSE A STOCK BROKER

A stock broker is a person who takes care of your investments and act as a mediator by selling and buying the shares/stocks you want. Whenever you want to buy or sell your stocks you have to put it in front of a stockbroker and hence, from there on the stockbroker takes care of the matter by following your order and placing them in the market.....