Page 165 - DCOM510_FINANCIAL_DERIVATIVES

Financial Derivatives

Notes of the scrip for a time interval. The details include total buy and sell order quantity value,
Open, High, Low, Last traded price etc.
8. Most Active Securities: This screen gives a list of the securities with the highest traded value
during the day and the quantity traded for each of them.
9. Net Position: This functionality enables the user to interactively view his net position for
all securities in which he has traded.

Self Assessment

State whether the following statements are true or false:
11. The purpose of the market inquiry is to enable the user to view passive orders in the
market aggregated at each price and are displayed in order of best prices.

12. The market inquiry screen can be invoked by using the [F9] key.
13. Order Status enables the user to look into the status of a specific order.

10.4 Placing Orders on the Trading System

For both the futures and the options market, while entering orders on the trading system,
members are required to identify orders as being proprietary or client order. Proprietary orders
should be identified as ‘Pro, and those of clients should be identified as ‘Cli’. Apart from this, in
the case of ‘Cli’ trades, the client account number should also be provided.
The futures market is a zero sum game i.e. the total number of long in any contract always
equals the total number of short in any contract. The total number of outstanding contracts
(long/sight) at any point in time is called the “Open interest”. This Open interest figure is a good
indicator of the liquidity in every contract. Based on studies carried out in international exchanges,
it is found that open interest is maximum in near month expiry contracts.

Figure 10.8: Market Spread/Combination Order Entry

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