Naked Option
What is a Naked Option? A naked option is an investing term that refers to an investor selling an option without holding a corresponding position in the option’s underlying security. Selling naked options is considered a high-risk trading practice, as it exposes the investor to high potential loss, while only providing a limited profit. Nonetheless,...
Black Swan Events in Everyday Life
Examples of Black Swan Events in Everyday Life While black swan events are most commonly associated with the financial world, there are plenty of examples of black swan events in everyday life. A common misconception about black swan events is that they are always negative events, but that is not always the case. The primary...
Negative Directional Indicator (-DI)
What is the Negative Directional Indicator (-DI)? A negative directional indicator (-DI) represents the downward behavior of the financial market. An upward sloping negative directional indicator indicates that the downtrend is strengthening. Theoretically, a (-DI) occurs when the difference in the low price of a security for two consecutive periods exceeds the difference in the...
Non-Banking Financial Company (NBFC)
What is a Non-Banking Financial Company (NBFC)? A non-banking financial company, also known as non-banking financial institutions, are companies that offer financial services and products but are not officially recognized as a bank with a full banking license. Generally, the distinction between a recognized bank and a non-banking financial company is the fact...
National Stock Exchange of India Limited (NSE)
What is the National Stock Exchange of India Limited (NSE)? The National Stock Exchange of India Limited (NSE) is the largest financial exchange in the Indian market. It was established in 1992 on the recommendation of the High-Powered Study Group, which was founded by the Indian government to provide solutions to simplify participation in the...
