Option Trading and the National Commodity and Derivative Exchange

We know that the stock exchange is markets wherebeen credited in our demat account, it is then BTST
the securities are bought and sold. It is a place for longstands useful. Using the scheme BTST which is
term financing needs of the business and it supportsprovided by some brokers, we are able to sell the
the activities of business by providing with theshares that have been bought yesterday. So BTST is
necessary liquidity. There are different types ofa short term tool used in making profits. BTST is often
investors in a stock exchange and they deal inused by investors to speculate when they expect that
different types of securities. It may be equity, futurethe price of a security is going to rise and they buy this
and options and commodities. Also a stock marketshare to sell it tomorrow at a higher price. So BTST
participant may be a speculator or a genuine long termhelps in booking short term profit for any investor.
investor.Nowadays most of the brokers do provide BTST
NCDEX is the abbreviation of national commodity andscheme and the investors make the most use of it.
derivative exchange. NCDEX is an online commodityAn important segment of the stock markets are the
exchange in India. NCDEX was incorporated as afutures and options. In futures and options we may buy
public limited company on April 23, 2003 with the aimor sell the securities without actually owning the same.
of providing an online commodity exchange. NCDEX isCall is an option to buy shares of stock at a specified
formulated by forward market commission. NCDEX istime in future. Call options are mostly profitable to the
situated in Mumbai and has more than 550 centers allbuyer when the underlying assets are moving up. So a
over India. NCDEX also offers an agriculturalbuyer of call option always wants the value of the
commodity index. NCDEX has been functioning fromunderlying asset to rise up. Some of the examples of
December 15, 2003. NCDEX is a private companycall option are intraday calls and nifty call. An intraday
promoted by a consortium of national level institutions.call has the validity of only one day and the buyer
The establishment of NCDEX has significantly boostedexercise his right on that day itself. Intraday calls are
up the commodity trade in the Indian stock markets.like day trading and do not carry the position into the
BTST is an abbreviation of buy today sell tomorrow.next day. Nifty calls are calls on the movement of nifty.
We know that we cannot sell a share before weThe nifty indices will have a value and this value keeps
receive the delivery of shares and our demat accounton changing second by second. So are made on the
is credited. In case we may get a huge profit by sellingmovement of nifty indices.
the shares that we have bought last day but it has not