Articles

While companies use leverage to finance assets or projects, investors use leverage to amplify their returns from stock market trades. Leverage in the stock market is synonymous with borrowing money to trade in securities. 

Options trading is a popular form of derivative trading. It allows traders to take positions in the market without actually buying or selling the underlying asset. In India, options are traded on various underlying assets such as stocks, indices, currencies, and commodities.

Trading in the futures and options (F&O) segment is highly risky, especially for small and retail traders. 

Investors keen on acquiring an ownership stake in a company can choose between two types of stocks – common stock and preferred stock. 

The Indian stock market is rife with diverse investment opportunities, one of them being high-beta stocks. These are stocks that display higher-than-market volatility, which means that their risk-reward, as well as the risk-loss ratio, is also considerably higher than other stocks. 

IT companies have been one of the primary drivers of the Indian growth story, especially after the liberalisation of the Indian economy, which reduced the restrictions involved in carrying out business with international parties to a significant extent.