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Showing posts with the label FDI

Futures: Derivative product explained

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 Hello readers, welcome back to the Green Bull V/S Red Bear. Today's blog is all about another derivative product called futures.  Futures trading represents a dynamic aspect of the financial landscape, offering investors a gateway to manage risk, speculate on price movements, and participate in diverse markets. In this blog series, we delve into the fundamentals of futures trading, unraveling its intricacies, and shedding light on its importance in the global financial ecosystem. So let's dive into the concept of the future! Futures: Derivative product Futures are standard financial contracts traded on organized exchanges that bound the buyer or seller to purchase or sell a specified quantity of an underlying asset (such as stocks, indices, commodities, or currencies) at an agreed-upon price (strike price) on a future date (expiry date). Futures agreements are a type of derivative instrument, so their value is determined by the underlying asset's performance. Characteris...

Commodities Market: MCX

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Hello readers! welcome back to Green Bull V/S Red Bear. Today's blog is all about the Commodities market and the body that manages the commodities market in India: Multiple Commodity Exchange also known as MCX including all the products MCX trades in for example: Crude oil, Gold, Silver, Copper, etc. So, let's dive into the depths of the commodities market! What are Commodities Market? The commodities market, or commodity market, refers to a financial marketplace where various raw materials or primary goods are bought, sold, and traded. This market enables participants to transact with physical commodities or their derivatives, such as futures and options contracts like the stock market. Types of trading in the Commodity Market: Physical Trading: Involves the actual buying and selling of physical commodities, where ownership of the goods is transferred from one party to another. Similar to equity trading Derivatives Trading: Involves financial instruments like futures and opti...

Impact of Global Ques on Indian stock market

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 Hello readers! Welcome back to my blog series Green bull vs Red bear. Today's topic is about the impact of other markets and international anomalies such as FDI's and FIIs and indexes like Dow Jones. so let's dive and try to understand the global markets and their impacts! What are global Ques? Global cues refer to various signals, events, or factors originating from international markets, economies, and geopolitical developments that affect financial markets' behavior and performance in a particular country or region. These cues can include economic indicators, central bank policies, geopolitical events, market sentiments, and trends in other major economies. Some common global ques that affect the Indian stock market US Federal Reserve Policy: The Federal Reserve's decisions on interest rates and monetary policy have a substantial impact on global markets, including India. Changes in US interest rates can impact capital flows into and out of India, influencing s...