I think no one has here discussed DERIVATIVES and Hedging.
Can be begin with them?
Regards
Elixir19
MBA FA
IMS DAVV
Lately I have been taking efforts for learning abt financial mkt basics as I aspire for MBA this season (I m not a commerce guy by training) .. and I think investing some money would be a good way to learn .. .I ll be getting a demat account soon ..
Pls guide me as to what will be the best way to start out..
I wont be investing heavily, what is the min investment I can make to startout..
thanks! 
I think no one has here discussed DERIVATIVES and Hedging.
Can be begin with them?
Regards
Elixir19
MBA FA
IMS DAVV
No idea about it..discuss please I will learn something new
Lately I have been taking efforts for learning abt financial mkt basics as I aspire for MBA this season (I m not a commerce guy by training) .. and I think investing some money would be a good way to learn .. .I ll be getting a demat account soon ..
Pls guide me as to what will be the best way to start out..
I wont be investing heavily, what is the min investment I can make to startout..
thanks!
I think 10000 is gud enough to start with. I started with 8000/- now its been almost 2 years. I have learned a lot.
Hi Everyone,
I believe that to learn about capital market besides theoretical knowledge one needs to even participate in capital market irrespective of the investment amount. By investing into market the learning process becomes more faster. Having said that one should never ever start trading into Future and options, as it may expose oneself to a danger of loosing the entire capital if his portfolio is small.Nevertheless one should try to avoid doing trading in cash segment as well.Trading once in a while is acceptable.
Hi Everyone,
I believe that to learn about capital market besides theoretical knowledge one needs to even participate in capital market irrespective of the investment amount. By investing into market the learning process becomes more faster. Having said that one should never ever start trading into Future and options, as it may expose oneself to a danger of loosing the entire capital if his portfolio is small.Nevertheless one should try to avoid doing trading in cash segment as well.Trading once in a while is acceptable.
Hello
I think there are a lot of misconceptions regarding F&O.; There is unlimited profit and minimised risk of loss in case of options. You can hedge your position using strategies like stangles etc. You can go for a call option and put option of the same strike price to hedge your position.
And as far as investing is concerned, I would advice to first play in virtual markets with virtual money. You will have idea of how capital market functions because this is the time to buy and keep it for long term and if you wish to learn at this time, it will only demotivate you. The trend of market is bearish and hence good for short selling but as a beginner you will take time to learn all this. So I would advice you to invest in virtual market rather then going for cash market.
Regards
Bhanupriya
MBA Financial Admin, Sem II
IMS
Lately I have been taking efforts for learning abt financial mkt basics as I aspire for MBA this season (I m not a commerce guy by training) .. and I think investing some money would be a good way to learn .. .I ll be getting a demat account soon ..
Pls guide me as to what will be the best way to start out..
I wont be investing heavily, what is the min investment I can make to startout..
thanks!
As already mentioned in the post, the best way to begin is playing in the virtual market as investment in the real market can be really distracting. It is going to surely affect your MBA preparation. I was too interested in investing but I was suggested the same by my teacher of capital market. Moneycontrol.com, moneybhai.com are examples of virtual markets from you can learn the basics of share market.
Regards
Bhanupriya
MBA Financial Admin, Sem II
IMS
er_gaurav211085 SaysNo idea about it..discuss please I will learn something new
Hi
We can begin the discussion but I am learning it too. I can discuss what are futures, options, commodity market, mutual funds but I don't have the practical knowledge yet.
Regards
Bhanupriya
MBA Financial Admin, Sem II
IMS
Hi
We can begin the discussion but I am learning it too. I can discuss what are futures, options, commodity market, mutual funds but I don't have the practical knowledge yet.
Regards
Bhanupriya
MBA Financial Admin, Sem II
IMS
Buddy as I have been trading in cash segment for the past 2 years so even I have gained theoretical knowledge about it, but I don't have the practical knowledge. Thats why I want to know practical experience of the people involved in it. But you are right we should start discussing it, so that more and more people can come up with their experiences.
Hello
I think there are a lot of misconceptions regarding F&O.; There is unlimited profit and minimised risk of loss in case of options. You can hedge your position using strategies like stangles etc. You can go for a call option and put option of the same strike price to hedge your position.
And as far as investing is concerned, I would advice to first play in virtual markets with virtual money. You will have idea of how capital market functions because this is the time to buy and keep it for long term and if you wish to learn at this time, it will only demotivate you. The trend of market is bearish and hence good for short selling but as a beginner you will take time to learn all this. So I would advice you to invest in virtual market rather then going for cash market.
Regards
Bhanupriya
MBA Financial Admin, Sem II
IMS
buddy you are right, but what ever you have mentioned needs capital. If one has a position and market takes a turn then he needs more capital for hedging. So keeping that point in mind jainjats is right. For a beginner cash segment is a safe option.
Hii everyone,
New joinee to this thread..found the posts interesting and helpful..
Technically speaking i am not from a commerce background but after joining MBA i have started investing and amquite active from fewmonths n capital market but as of now i have really tried in F&O; segment.
In the previous post i read therewere concerns raised baout using virtual money to learn the basics and was said that in real its quite differnt..it's an personel opinion but i would suggest new entrants in this field show try the virtual platforms for few days before going real as it give the feel of market as well as the risk involved...the best being moneybhai.com..
Now with my good experiance of virtual platform i want to go ahead in F&O; segments but before going real i want to go virtual and so need help from you uys..i cant find out anything supporting F&O; in virtual..can anybody suggest some links.....it's would be of immense help..
Cheer's 
Hey puys I have a question.
Why did the sensex fall after the merger of RIL & RPL was announced today? Normally when such mergers take place, I have noticed that the Sensex dips. What might be the reason for this? I mean isnt it supposed to be a good deal when mergers take place? I am relatively new to these sensex and stuff. If someone can explain the reasons for the decline in sensex, I would be thankful.
Hey puys I have a question.
Why did the sensex fall after the merger of RIL & RPL was announced today? Normally when such mergers take place, I have noticed that the Sensex dips. What might be the reason for this? I mean isnt it supposed to be a good deal when mergers take place? I am relatively new to these sensex and stuff. If someone can explain the reasons for the decline in sensex, I would be thankful.
i think RPL is running in loss..thats why !!!
Hey puys I have a question.
Why did the sensex fall after the merger of RIL & RPL was announced today? Normally when such mergers take place, I have noticed that the Sensex dips. What might be the reason for this? I mean isnt it supposed to be a good deal when mergers take place? I am relatively new to these sensex and stuff. If someone can explain the reasons for the decline in sensex, I would be thankful.
Rpl is not running in loss yaar. This deal will be very much beneficial for RIL as all the Tx benefits that RPL was getting will be availed by RIL now. But the deal is good for those RPL share holder who have purchased in the range of 75-90..not early buyers like me
The deal is good, but that could not create any impact in the sensex because of the negative global clues.
Hi i was asked to define a formal term for risk in equity in a certain MBA interview .... i was not aware of any such index/ratio . Can you guys help me out ?
ankurtulsyan SaysHi i was asked to define a formal term for risk in equity in a certain MBA interview .... i was not aware of any such index/ratio . Can you guys help me out ?
The most common parameter (arguably) is Beta, which determines the correlation of equity return with respect to certain index returns. Say for instance Beta of ICICI (~1.3 say) is more than that of Reliance (~1.0 say) with respect to sensex, an upward/downward movement in sensex (market wide factors) will produce a higher (in same direction) change in ICICI than Reliance (of course theoretically).
Further:-
http://en.wikipedia.org/wiki/Beta_(finance)
Regards,
ANdy
given the 1:16 swap ratio of the RIL-RPL merger what will be the fate of the investors who own less than 16 shares or for that matter if someone owns 20 shares then how will the remaining 4 shares be adjusted?
winner_iima Saysgiven the 1:16 swap ratio of the RIL-RPL merger what will be the fate of the investors who own less than 16 shares or for that matter if someone owns 20 shares then how will the remaining 4 shares be adjusted?
They are given equivalent amount..even if one has 100 RPL shares then he will be given 6 RIL stocks and rest for 4 stocks he will be given equivalent amount.
er_gaurav211085 SaysThey are given equivalent amount..even if one has 100 RPL shares then he will be given 6 RIL stocks and rest for 4 stocks he will be given equivalent amount.
I think.They will not return the money for the remaining shares.They will ask the share holders to buy 12 more shares in RPL in order to compensate the ratio. Else they will keep like 6*(4/16) = 6.25 shares of RIL.
Rpl is not running in loss yaar. This deal will be very much beneficial for RIL as all the Tx benefits that RPL was getting will be availed by RIL now. But the deal is good for those RPL share holder who have purchased in the range of 75-90..not early buyers like me
The deal is good, but that could not create any impact in the sensex because of the negative global clues.
This merging is not for the TAX benefit for the company.
This is mainly to improve the cash flow of the company and also they will have lots of operational benifits towards the company.
Moreover 70% of RIL projects will come under RPL.
This will not give any benefits in TAX for the company.In future their may increase in TAX for the company for showing high turnover. Spliting up of company in several divisions may help in TAX benefits.
Cheers,
BALAJI