European Option
Definition of European Option
The options trader can only exercise the call option, that is, buy the underlying assets on the day of expiry which is 01-01-2023. In India, traders can only engage in European options.
Related Terms
Delivery Notice
Advance/Decline Line
As a result, the Advance/Decline Line is a technical indicator used to gauge market sentiment, price trends, and trend reversals.
Here’s how the Advance/Decline Line is calculated:
- Calculate the number of stocks that finished in the red.
- Calculate the number of stocks that finished in the green.
- Subtract #1 from #2 to find out the net movement aka Net Advance.
- Repeat #1, #2, and #3 the next day and add the values for Net Advance.
- Add both the previous day’s and the present day’s Net Advance. Repeat for future calculations.
Bear Market
Typically, investors believe that a bear market has arrived when a stock, commodity, or entire index fall by 20% or more from its most recent highs.
The onset of a bear market is generally in tandem with poor economic conditions.
Non-Voting Shares
Cash Market
A stock market exchange like NSE or BSE is an example of a cash market as trades are settled on the spot at the spot price. Derivatives like futures are not a part of the cash market are trades are settled in the future.
Interest Rate Futures
Just like any other futures contract, interest rate futures also give the right and obligation to fulfil the terms of the contract on expiry.
The price of interest rate futures and the interest rate itself shares an inverse relationship. If interest rates move higher, then the futures will be less valuable.

