Risks, Price Factors, and Market-Condition-Based Strategies for Retail Investors 1. What Is an Option? An option is a financial derivative that derives its value from an underlying asset such as a stock or index (NIFTY, BANKNIFTY, SENSEX). An option contract gives: the buyer the right (not obligation) the seller the obligation to buy or sell the underlying asset at a pre-defined price (Strike Price) on or before a specified expiry date . Types of Options: Call Option (CE) – Right to buy Put Option (PE) – Right to sell Options are traded for hedging, income generation, and directional views , but they carry significant risk , especially for uninformed participants. 2. Key Risks in Options Trading Options are not suitable for all investors . The primary risks include: a) Time Decay (Theta Risk) Option value erodes with time. If the market does not move in your favour, the premium can decay rapidly , especially near expiry. b) Volatility Risk Option price...
KYC fraud: What is it, how it happens, and tips to avoid KYC fraud KYC fraud: What is it, how it happens, and tips to avoid KYC fraud KYC, or "Know Your Customer," is a crucial process used by banks, financial institutions, and other service providers to verify the identity of their clients. The primary goal of KYC is to prevent fraud, money laundering, and other illegal activities by ensuring businesses only deal with legitimate individuals. udemy.com Oracle Courses - Free Oracle Database Ad It involves collecting personal information such as identification documents, proof of address, and financial details to establish the authenticity of customers. While KYC enhances security, it has also become a target for fraudsters who attempt to exploit the process for illegal gain. Common scams include phishing attacks, fake calls, and websites designed to steal sensitive information. Explore various ways KYC fraud can occur and provide practical do’s and don’ts to protect yourself f...