Easy Office
LCI Learning

Hedging

This query is : Resolved 

15 June 2016 what is the meaning of hedging what its use and why it is reqiured.pls give me complete detail for this.

16 June 2016 The phrase is typically used in INVESTMENT field. You need to understand the basics before you can realise the importance of HEDGING. I recomend you to go through the site of www.nseindia.com.......NCFM section for a detailed study material
Hedging typically refers to positions in the market which compensate the extreme movements. They are opposite in direction. e.g. buy NIFTY + sell nifty call...... The timing and the price barrier is another consideration.

16 June 2016 thnx for given a site




16 June 2016 thanx for given a site

16 June 2016 you are most welcome. Please feel free to ask the question on hedging once you go through the said site

16 June 2016 okk i will said after read that topic

16 June 2016 you are most welcome

16 June 2016 can you pls give me the example of hedging




16 June 2016 NIFTY long(buy) at 8200.....this is with the hope that NIFTY will go up
INFY, SBI, RELIANCE etc....short(sell)
The hedge will thus ensure minimum LOSS

16 June 2016 okkk it means that it is reduce the risk of stock market when purchase the share

16 June 2016 yes. It should be used to restrict / reduce the risk due to volatility in the market.

16 June 2016 okk i understand




16 June 2016 can you pls explin me about derivatives

16 June 2016 sure......Basically one must realise that FNO are an IMAGINARY products. The underlying is, however the real commodity or security.
In Derivative (FNO), there are 2 products viz 01. Future and 02. Option......within Option, there are 2 products viz Call, Put
Both collectively are known, in the security market as FNO or Derivative market

16 June 2016 okk can u pls give me the example




16 June 2016 Nifty Future, Reliance Future, State bank future,
In commodity future....gold, silver, crude oil and so on so forth



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries