Blog by PriyaSahu

Basis risk is very important in commodity trading. It means the risk that the difference between the spot price (current market price) and futures price of a commodity changes in an unexpected way. Traders use futures contracts to protect themselves from price changes. But because the spot and futu...

Basis risk in futures trading is a very important concept. It means the chance that the difference between the futures price and the spot price (the current market price) changes in an unexpected way. When traders or investors use futures contracts to protect themselves from price changes (hedging...

Basis trading in commodity markets is a strategy where traders take advantage of the difference between the spot price of a commodity and its futures price. This difference is called the "basis." Traders use basis trading to lock in profits, hedge risks, and benefit from price mov...

Behavioral finance plays a major role in asset allocation. It helps investors understand how emotions like fear, greed, and overconfidence affect where and how much they invest in different asset classes. By recognizing these emotional patterns, investors can make better, more balanced decisions ab...

Behavioral finance plays a key role in institutional investment strategies by helping large investors like mutual funds, pension funds, and insurance companies understand how psychological factors can impact market decisions. Even though institutions are run by professionals, human emotions like fe...

Behavioral finance plays a big role in investing. It explains how people’s emotions and thinking patterns affect their investment choices. Many investors don’t always act logically. They make decisions based on fear, greed, overconfidence, or following others blindly. Behavioral finance helps us un...

The role of behavioral finance in stock market investment decisions is to help investors understand how emotions and mental biases influence their choices. It explains why people sometimes act irrationally while investing, such as panic selling or chasing trends. By learning about behavioral fi...

       Benchmark indices act as a standard to compare the performance of mutual funds. They help investors understand how well a mutual fund is doing compared to the overall market or a specific sector. By looking at how a fund performs against its benchmark, you can pick fu...

       Beta hedging in stock trading is used to reduce the risk caused by market movements. It involves balancing the portfolio’s beta to protect against losses if the market moves against you. The goal is to lower your portfolio’s overall risk while keeping potential return...

       Beta helps in analyzing mutual fund risk by showing how sensitive the fund's returns are compared to the overall market. A higher beta means the mutual fund tends to move more than the market, indicating higher risk. A lower beta means less movement, showing lower ris...

       Beta plays a key role in assessing stock volatility by measuring how much a stock's price moves compared to the overall market. It shows whether a stock is more or less volatile than the market index like Nifty 50. A higher beta means the stock price swings more,...

       Beta helps assess portfolio risk by showing how much your portfolio's value might change compared to the overall market. It measures the sensitivity of your portfolio to market movements. A higher beta means your portfolio could be more volatile and risky, while ...

       Beta in stock market investing shows how much a stock's price moves compared to the overall market. It helps investors understand the risk level of a stock. A beta higher than 1 means the stock is more volatile than the market, while a beta lower than 1 means the...

       The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). In short-term trading, this spread plays a key role because it affects how much profit a trader can make on quick t...

Big data plays a crucial role in high-frequency trading (HFT) by helping traders analyze huge amounts of market data in real-time to make extremely fast buying and selling decisions. Using advanced algorithms, traders use big data to spot tiny price changes and market trends that last for ...