What is option Contra trade?

A contra market is a description of an asset or investment that moves against the trend of the broad market. Contra (or contrarian) market securities and sectors tend to have a negative correlation, or weak correlation, with the broader market index and the general economy.

What is a contra call?

Parag Parikh of Parag Parikh Financial Advisory Services (PPFAS) defines a contra call like this: “When a good company’s share price falls, investors stay away for fear of loss. A true contrarian will find the latter attractive because he might get a good business for cheap.

How does Nifty call option work?

A call option on Nifty gives a buyer the right, but not the obligation, to buy the index at a predetermined price during a specified time period. Similarly, a Nifty put gives its buyer the right to sell the index. A seller of the options is obliged to give or take delivery of Nifty from the buyers.

Who are contra traders?

Contra Trade means a Trade or transaction which involves buying or selling any number of shares of the Company within 6 (six) months of Trading or transacting in an opposite transaction involving selling or buying of the shares purchased or sold, as the case may be.

What is contra selling?

Contra. Selling shares before the date of settlement of the purchase, with the intention to settle only the net difference of amounts involved in the purchase and the sales.

What is the purpose of a contra account?

A contra account is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account’s natural balance is the opposite of the associated account. If a debit is the natural balance recorded in the related account, the contra account records a credit.

What is a Contra participant?

contra. The other side of a participant transaction. Whenever a security is moved, one side gets a credit and the other a debit.

What is a contra opportunity?

What is a contra deal? A marketing contra deal is an opportunity to partner with another brand or organisation for mutual benefit.

Is it possible to trade Nifty options intraday?

Yes, it is possible to trade nifty or stock options intraday. Many traders do it by opening a position at the start of the day and closing it at the end of market hours. The process to do intraday trade is similar to making any Options trade.

What are Nifty Futures and options?

Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date. Nifty options are of two types —call and put options.

How much does it cost to buy call options in NIFTY?

Let’s say that this call is available at a premium of Rs 30 per share. Since the current contract or lot size of the Nifty is 50 units, you will have to pay a total premium of Rs 3,000 to purchase two lots of call option on the index.

What are Nifty50 options?

Nifty Options is a derivative instrument wherein the underlying asset is Nifty; like Nifty50 futures it also has lot size 75, different strikes and multiple expiry periods. It is a derivative like Futures but unlike Futures your profit/loss will not be linear depending on the up move/down move in NSE NIFTY .