The Ultimate Guide to Options Trading

API trading lets us connect trading software to a broker’s systems to retrieve market data, send orders and monitor positions. API stands for application programming interface: the connection through which software exchanges requests and responses. Instead of entering every order manually, we can send instructions through a program. The API carries those instructions; our trading…

An OI spurt is a sudden rise in open interest: the number of contracts that are still open. It shows us where positions are building quickly. We use it as a starting point for a closer look, not a signal to buy or sell. What Does an OI Spurt Tell Us? Open interest tells us…

An intraday setup can appear while we are watching another chart. By the time we notice it, the price may have moved. Algorithmic and automated trading lets us turn a defined trading plan into instructions that software can monitor and act on. The value lies in making our process repeatable. We still need to decide…

An automated trading system is software that turns predefined trading rules into orders. It receives market data, checks whether specified conditions are met, and sends orders through a connected trading platform or broker. When we automate a trading workflow, we decide the rules before the trade rather than manually acting on every signal. Those rules…

A trading idea can sound simple: enter when a price breaks above a range, exit when the setup fails, and keep the position within a fixed limit. Following that idea consistently takes more work. We need to watch the right data, calculate quantities and track what happens after each order. Algorithmic trading puts those instructions…

The working capital turnover ratio measures how much sales revenue a company generates for each rupee of average working capital. We calculate it by dividing net sales by average working capital for the same period. When we read a company’s results, revenue growth is only part of the picture. We also need to understand how…

A ₹10 move can look dramatic on one stock and ordinary on another. Before we judge the move, we need to understand how widely that stock’s price has been moving. Average True Range, or ATR, helps us put that movement in context. ATR measures price volatility by averaging the true range over a chosen number…

Before we enter a trade, it helps to put two numbers side by side: the loss we are planning for and the profit we are targeting. The risk/reward ratio compares those amounts. If our planned loss is ₹500 and our potential profit is ₹1,000, the risk:reward ratio is 1:2. We are risking one rupee for…

A falling wedge pattern forms when price makes lower highs and lower lows between two downward-sloping lines that gradually move closer together. It has a bullish bias, but we look for a break above the upper line before interpreting it as a bullish signal. The useful clue is the narrowing range: price is still falling,…

When we study a price chart, we can see where a stock has moved. The Money Flow Index (MFI) adds another question: how does trading volume affect the strength of that move? MFI combines price and volume to estimate buying and selling pressure on a scale from 0 to 100. We can use it to…

A dead cat bounce is a temporary rise in a stock or other asset after a sharp fall, followed by another decline. When we see prices recover after a sell-off, the key question is whether the recovery can last. The phrase describes a rebound that fails to change the broader downward trend. Its unusual name…

The receivable turnover ratio shows how efficiently a company collects money from customers who bought goods or services on credit. It tells us how many times, during a period, the company converts its average accounts receivable into cash. For traders and investors, this ratio is useful because sales growth does not always mean strong cash…