#Essential
What is Hedging?
Markets never move in one direction for long. Sometimes your investments grow, and other times they slip. To handle this uncertainty, investors use hedging. It works like a safety net. A hedge does not remove risk completely, but it helps reduce losses when markets turn against you. What Is a Hedge? So, what is a […]
What is Immunization?
Markets rise and fall, and with them, interest rates shift. For most bond investors, this feels like an endless roller coaster. The clever way to step off that ride is through immunization—a strategy that cushions you against these swings and helps make sure your future plans stay intact. Understanding Immunization When you hear the word […]
What is Interpolation?
Markets move every minute but our data points are not always complete. Interpolation helps fill the small gaps. It estimates values that fall between two known points on a chart. Used well, Interpolation gives a clean line to judge prices, yields, and trends without guessing blindly. What Is Interpolation Let us answer what is Interpolation […]
What is Leverage?
You know that friend who starts a business with just their savings? Slow and steady. Now, imagine another who borrows on top of their savings and doubles the firepower. If it works, their returns? Way bigger. If not… well, the losses bite harder. That’s leverage in plain terms. A tool that can help you move […]
Liquidation – Meaning, Types, Process with Examples
Introduction Liquidation is the final chapter of a company’s life. The business sells what it owns and pays what it owes. For investors, staff, vendors, and lenders, liquidation brings clear answers about money and the order of payments. In India, the Insolvency and Bankruptcy Code and the NCLT set the rules so the path is […]
What is Liquidity?
Here is a simple truth from Indian markets. When you can sell an asset fast at a fair price you feel safe. That comfort comes from Liquidity. This ease acts like oxygen for trading and saving. When Liquidity vanishes prices wobble and stress rises. What Is Liquidity? People often ask what is Liquidity in plain […]
What Is Maturity Date?
Introduction When it comes to fixed-income investments, the maturity date is an important factor investors need to be aware of. Whether you’re investing in a bond, a fixed deposit or even a recurring deposit, the maturity date marks the end of the investment period and indicates when the principal amount is due to be repaid. […]
What is Open Interest?
Introduction If you trade futures or options in India you will often see a small line on your screen called Open Interest. Price tells you where the market just moved. Volume tells you how busy the day is. Open Interest tells you how many positions are still alive after the bell. Think of Open Interest […]
What is Open Market Operation (OMO)
Introduction Most people follow the repo rate and assume that’s where monetary policy begins and ends. In reality, the everyday steering happens through open market operations. Think of the RBI as the system’s traffic manager: when money lanes look crowded, it lets more cars through; when speeds get risky, it slows things down. By buying […]