5Dec

Why stock market trader use stock warrants?

Stock warrants are derivatives that provide the right but not the obligation to buy a particular security before a pre-decided time. It is in many ways just like the stock option only a difference that varies it from options is that an option is an instrument of stock-exchange while the warrants are issued by the company which often associated with a bond. An investor can not write warrants as they can write options. There are so many types of securities to invest, an investor can take advice from stock tips provider in order to clear various investment related confusion.

The price at which a security can be purchased or sold is considered as a exercise price or strike price.

Types of Warrants –

There are number of warrants issued by company, following is the explanation about few types of warrants –

1. Covered warrants – Generally, covered warrants are issued by financial institution just like the bank or similar institution but not by the company. Covered warrants allow a person to buy and sell any equity stock from the issuer. It is slightly different from normal warrants as they only issued by financial institutions. Also, it allows the holder to buy and sell underlying stocks at a particular time. It is not limited to the equity only, a trader can buy currencies, commodities and any other financial securities.

2. Traditional or normal warrants – Traditional warrant are issued by the company and it is based on bonds. Traditional warrants are issued in coexistence with a Bond, it is just like warrant- linked bond and it represents the right to acquire shares in the particular entity. Warrants are just like incentives offering by a company to investors in the way that can make the issue of warrant more attractive by providing different advantages.

3. Call warrant – These are the financial instruments that give a person the right to buy the underlying security at a specific price, on or before a mentioned date. Call warrants are generally included in an equity offering from a company, in order to provide an encouragement to potential investors. Call warrants are generally free from any stock or bond and it trades separately in the major stock exchanges.

4. Put warrant – A put warrants have an exercise price at which an investor sell the warrant. It is just opposite to put warrants, it provides the right to sell an underlying security at a specific value. Put warrants are uncommon as warrants provide right to buy and it is just opposite to other warrants.

Investment in the market needs expert suggestions, trading tips and strong profit earning strategies. Many traders look for profit earning stock trading tips for a better return. Few traders also take a chance by trading in forex and binary options. Binary option is a kind of trading in which a trader makes a bet on the future price of a security and get profit according to result. It is very hard to maintain loss in binary option, for this a trader can refer binary option trading tips to make the right decision.

27Sep

Nifty Outlook For Tomorrow By Epic Research

A bearish engulfing pattern with largest one day loss butchers the bulls as Nifty slides below all crucial moving averages it was holding from last December. A close below 9800 confirms that damage can be much sever in coming days as no breathing space is left for short term bulls.
A bearish engulfing pattern is seen which has engulfed the previous sessions some minor rebound while a close below 9800 is signalling more bearishness in market. On Immediate basis the support for market is seen at 9700 which in case holds may provide a short term relief coupled with  rollover data which is way weaker as compared to last few months with a day more to go. We see short term support for market coming at 9540 – 9600 which may give some meaningful pause. On higher side point of inflection is seen at 9800 – 9840.
As Far as OI data is  concerned we may see much weaker expiry this month which may set the bearish tone for October series.
We are cautious with sell on rise approach and any rise shall be used for the same. Some defensive play is observed in FMCG and Infosys but that may as well evaporate given the strength of bears on overall market.
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