Hi All,
I am new to option and derivative trading. I have been struggling understanding and interpreting the terminology. Can someone answer to my questions
1. how to interprete the market trend depending on the open interest data changes for futures , call and put options
2. how to interprete the market trend depending on the volume and price changes for futures , call and put options
3.What are put call ratio, PCR OI (I think put call ratio open interest) and PCR Volume? And how to interprete based on the data for those values
4. What is basis ? and how does the change of basis help in predicting the market
5. What is position limit and rollover
Please help me with these , if someone change point to the documents with these details it I would be very greatfull to them.
thanks in advance.
Ravi
I am new to option and derivative trading. I have been struggling understanding and interpreting the terminology. Can someone answer to my questions
1. how to interprete the market trend depending on the open interest data changes for futures , call and put options
2. how to interprete the market trend depending on the volume and price changes for futures , call and put options
3.What are put call ratio, PCR OI (I think put call ratio open interest) and PCR Volume? And how to interprete based on the data for those values
4. What is basis ? and how does the change of basis help in predicting the market
5. What is position limit and rollover
Please help me with these , if someone change point to the documents with these details it I would be very greatfull to them.
thanks in advance.
Ravi