Decoding Market Reversals: Analyzing Volume and Open Interest Divergence

Imagine you are reviewing Nifty futures data during a mid-day trading session. You observe that the underlying index is hitting a new intraday high, but simultaneously, open interest is steadily declining while trading...

Distinguishing Premium Margin from Initial Margin in Derivatives

Imagine you are a desk analyst at a brokerage firm in Mumbai, reviewing a client’s potential entry into Nifty 50 index options. Your client is confused as to why their account shows a debit for the full premium while...

The Mechanics of Physical Settlement and Short-Term Volatility

Imagine you are reviewing your portfolio as the third Thursday of the month approaches—the standard expiry date for stock derivatives in India. You notice a client’s holding in a mid-cap company has a high volume of open...