Equity Index Trading

At AUM Wealth Services once we decide on the asset allocation, we take up the required exposure towards Equity Index Trading which we feel is the key component and the Driving Engine of ROI for any Investment Portfolio.

Derivative trading in recent years has evolved in terms of volume. Role of technology in automated trading algorithms and High-Frequency Trading (HFT) have further accelerated its growth.

Derivatives are a type of financial instrument that derive their value from their underlying asset. Examples of derivative trading include futures and options, where these contracts derive their value from either another share, currencies or commodities. Trading in options is a Blessing to manage volatility in the stock market.

Since it gives the holder of the contract a right to buy or sell the underlying asset at a specified price at a specified time, it gives them more power in managing their risks. This power, however, is not available when it comes to other financial instruments.

Options trading also allows traders to make profits in both a rising market as well as at times when the market is falling. You can use one option contract to hedge your position for another options contract.