September 22, 2006

Speculation Rocks


I was surprised when I was reading this document from NSE on a derivative update. Read the section on stock futures. We simply beat the nearest exchange 'hands down'. We enjoy taking risks and especially in the futures segment and not in the options segment. 15th in stock options and 9th in index options. We rank 1st in stock futures and 3rd in index futures.

Index options where it is probably easier to speculate as the only risk that one takes is a systemic risk. NSE stands 9th in this section. We are probably more risk takers than the rest of the world or probably too much 'inside information' at play. If one reads the entire document, one sees that the retail participation is extremely high (more than 50%).

God! This is scary

3 comments:

Mars said...

I am bookmarking your blog and I ama going to speak about it in all my interviews! I am sure I will crack an I-Bank Offer. I might then recommend you to the HR someday when I am feeling happy ;)

....Seriously speaking, I am going to read your blog sincerely for understanding the opinions behind those news in the papers!

Anonymous said...

you quite right about the risk taking of the 'punting' community in india .. a legacy of the higly efficient badla system of the past. you cant beat india's gujarati and marwari community at it. however NSE's pride in their world standings in understandable. thier risk is really the risk in ensuring adequate margins are collected and settlements carried out as required. so far they have done a gr8 job, although i feel that the arbitrary increase in margins on drastic falls is unjust. whether NSE will extend intself beyond its means .. time will tell... we have history behind us. considering their shareholders .. its quite unlikely.

hey why dont u blog on mr hunter and the amarnanth debacle..

cheers

deepak

M B Mahesh said...

I shall do the same once I have some details on it...still trying to understand the impact of Amaranth.