Trading Glossary

A contract between the buyer and the seller, whereby buyer acquires the right but not the obligation, to purchase the underlying contract at a fixed price on or before the specified date. The seller of the call option assumes the obligation to deliver the underlying contract should the buyer wishes to exercise the option.

Any measure used by a stock or commodity exchange to stop trading after a security or an index has fallen by a certain amount. Circuit breakers are designed to prevent panic selling.

A clearing house is the administrative center of a market through which all transactions are cleared. In addition to administering trades, the clearing house guarantees the performance of contracts. The clearing house becomes the counter party to both the buyer and the seller of a contract when a trade has been matched, thereby reducing counter party risk.

The CNX Nifty Index is one of the best-known icons of Indian economy and among stock market observers around the world. The CNX Nifty Index (preferably Known as NIFTY) is a weighted average of most liquid and top capitalized 50 stocks listed on the National Stock Exchange (NSE) that covers 23 sectors of the Indian economy. It is a broad based benchmark that offers exposure to the Indian market in one efficient portfolio.