Equity Trading Every individual has a desire to earn money and for that a rational human takes all the pains that are necessary to achieve his aim.
One widely used avenue for reaping a reasonable return on investments is speculating in the stock market. As the saying goes, risk and reward go hand in hand. Here, one octant point is that one should never be wary of taking a loss in its stride. Ability to cut losses is equally important or even more important than coming out with a profit.
Based on this ability alone, one should venture into the market. And above all these, one must keep himself updated about various terms and issues related to the market in order to understand things in a better way. The Aranox group helps such individuals in achieving their goals.
Financial derivatives came into the spotlight along with the rise in uncertainty of post-1970 when the US announced an end to the Bretton Woods System of fixed exchange rates leading to introduction of currency derivatives followed by other innovations, including stock index futures but there eruption in India is off lately in June 2000.
There are still apprehensions about derivatives. There are also many myths though the reality is different especially for exchange-traded derivatives which are well regulated with all the safety mechanisms in place .
Derivatives are financial securities whose value is derived from another "underlying" financial security. Options, futures, swaps, swaptions, structured notes are all examples of derivative securities. Derivatives can be used hedging, protecting against financial risk, or can be used to speculate on the movement of commodity or security prices, interest rates or the levels of financial indices. The valuation of derivatives makes use of the statistical mathematics of uncertainty, which is very complex. The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance.
The word 'derivative' originates from mathematics and refers to a variable, which has been derived from another variable. Derivatives are so called because they have no value of their own. They derive their value from the value of some other asset, which is known as the underlying. For example, a derivative of the shares of Infosys (underlying), will derive its value from the share price (value) of Infosys. Similarly, a derivative contract on soybean depends on the price of soybean. Derivatives are specialized contracts which signify an agreement or an option to buy or sell the underlying asset of the derivate up to a certain time in the future at a prearranged price, the exercise price.
The contract also has a fixed expiry period mostly in the range of 3 to 12 months from the date of commencement of the contract. The value of the contract depends on the expiry period and also on the price of the underlying asset. Futures & Options Segment is another new segment where trading on derivatives contract
The Commodities Derivative market is the new emerging avenue for investors to increase wealth. Commodities are also the next best option after stocks and bonds for portfolio diversification. Based on the fundamentals of demand and supply, Commodities form a separate asset class offering investors, arbitrageurs and speculators immense potential to earn returns.
Aranox harnesses the immense potential of the Commodities market by providing you a simple and effective interface, thorough research and knowledge.
Are you seeking investment opportunities in new markets? Commodity derivatives is an emerging investment gateway. Global market movements have an impact on commodity prices. We at Aranox thoroughly understand these fluctuations in the commodity prices and use high-end analysis to derive easily consumable insights from time to time.
Our team of experts shall guide you to diversify your assets as per your ambitious targets in the commodity markets. Based on the fundamentals of demand and supply, Commodities form a separate asset class offering investors, arbitrageurs and speculators immense potential to earn returns.
We believe in serving our clients with innovative ideas through a simplified approach. Our services are tailored as per international standards to meet the varying needs of budding investors to an experienced market player. With seamless customer experience, our clients enjoy a blend of best in class solutions integrated together to create a portfolio as per their comfort zone.
Benefits of Commodity Trading:
Currencies are the money of different countries, and currency trading is the buying and selling of these currencies. There are almost as many different currencies as there are countries, but the most popular currencies for trading are the US Dollar, the Euro, the British Pound (Sterling), and the Japanese Yen. The currency markets are some of the most popular day trading markets, and they therefore have some of the highest volume (number of contracts) and liquidity. This high volume and liquidity makes the currency markets attractive to all types of traders, including individual day traders, trading companies, financial and non financial companies, banks, and governments
Currency futures are futures markets where the underlying commodity is a currency exchange rate, such as the Euro to US Dollar exchange rate, or the British Pound to US Dollar exchange rate. Currency futures are essentially the same as all other futures markets (index and commodity futures markets), and are traded in exactly the same way. Futures based upon currencies are similar to the actual currency markets (often known as Forex), but there are some significant differences. For example, currency futures are traded via exchanges, such as the CME (Chicago Mercantile Exchange), but the currency markets are traded via currency brokers, and are therefore not as controlled as the currency futures. Some day traders prefer the currency markets, and some day traders prefer the currency futures. I recommend the currency futures as they do not suffer from some of the problems that currency markets suffer from, such as currency brokers trading against their clients, and non centralized pricing.
IPO or Initial Public Offer gives investors the opportunity to invest early in companies and gain higher investment returns in a shorter time span. Our team at Aranox keeps track of companies entering the capital markets. Our timely guidance will guide you to make the right investments for your portfolio, at the right time. We enable our clients to make better allocation of their resources in alignment with the IPO issue date.
Also, enjoy value-added services such as upcoming IPO updates, brief profiles of companies entering the market and more. Our experts have the right networks and resources to give you the right advice about risk and returns along with best-in-class services.
Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Aranox presents its Mutual fund services that strive to meet all your mutual fund investment needs. We have a wide spectrum of investment schemes from all top mutual fund houses.
Aranox also provides recommendations based on in-depth research, mutual fund performance and mutual fund ratings to help meet your investment goals.