Hi Fellow Traders,
Dude....as we all know that Futures & Options segment are Cash-Settled and hence involves NO DELIVERY.
So, I was wondering, how come F&O Segment (whether Long or Short position build-up) impacts the Cash segment.
To be more specific,
the other day I read in an article that there is huge build-up of short positions in F&O segment. As a result, this will trigger Short-covering and lead to Rally of market.
I understand that when we square off positions in F&O, it is Cash-setlled and there is no delivery at all.
So, when there is no delivery, how is the F&O segment going to AFFECT the Cash segment at all.
Think Guys....
I need an Proper answer...
Sangfroid
Dude....as we all know that Futures & Options segment are Cash-Settled and hence involves NO DELIVERY.
So, I was wondering, how come F&O Segment (whether Long or Short position build-up) impacts the Cash segment.
To be more specific,
the other day I read in an article that there is huge build-up of short positions in F&O segment. As a result, this will trigger Short-covering and lead to Rally of market.
I understand that when we square off positions in F&O, it is Cash-setlled and there is no delivery at all.
So, when there is no delivery, how is the F&O segment going to AFFECT the Cash segment at all.
Think Guys....
I need an Proper answer...
Sangfroid