Trader Trajectory: Navigating the World of Futures & Options

Dec 28, 2024

In this discussion, Piyush Chaudhry, founder of Wave Analytics with over 20 years in trading, and Prashant Shah, trading expert and CEO of Definedge Solutions, dive into the booming world of futures and options in India. They explore how traders must adapt to high-frequency trading and the rise of automated strategies. The conversation sheds light on the regulatory challenges faced by retail traders and underscores the critical need for trader education. Listeners also gain insights on developing disciplined trading practices and risk management for long-term success.

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INSIGHT

Trading Landscape Evolution

The trading landscape has evolved significantly, with algorithmic trading and high-frequency trading (HFT) becoming dominant.
Adaptability is key for traders to survive in this changing environment.

INSIGHT

Impact of Algorithmic and High-Frequency Trading

Algorithmic trading offers advantages over traditional methods, especially in execution discipline.
However, HFTs primarily impact shorter-duration trades due to their ability to understand the order book.

INSIGHT

Options Trading and Gambling

Options trading has grown significantly in India, driven by Bank Nifty's weekly expiry.
While a valuable instrument, options are often misused for gambling, especially by retail traders on expiry days.

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The exponential growth in markets and investment activity has also led to a surge in the number of traders.

These are the skilled craftsmen of the trade, one ear firmly on the ground of India Inc the other on the reverberations of money movements. The massive growth brings its shares of opportunities but also challenges in terms of regulations, tech innovations and newer risks. The world of F&O has especially been in the news for its ballooning numbers as well as losses. How does a trader navigate?

Join ET markets editor Nishanth Vasudevan as he talks about all this and more with

Piyush Chaudhry, founder of Wave Analytics and Prashant Shah, founder and CEO, Definedge Solutions. Only on the latest episode of ET Wealth and Beyond.

You can follow our host Nishanth Vasudevan on his social media: Linkedin & Twitter

Catch the latest episode of ‘ET Wealth & Beyond’ on etwealthandbeyond.com, Spotify, Apple Podcasts, JioSaavn, Amazon Music and Youtube.

About ET Wealth & Beyond: In partnership with The Economic Times, BSE presents the "Wealth and Beyond" podcast, a six-episode series designed to demystify the rules of investor engagement, awareness, and protection. As retail investor participation surges, navigating the complexities of securities markets and making well-informed decisions is critical. This series will feature renowned market experts, who will share insights on The Art of Investing, Traps of Tip Trading, Navigating Futures and Options and more.

By addressing these key topics, this podcast series aims to equip retail investors with the knowledge and tools they need to protect their investments and thrive in today’s markets. As securities markets evolve and the number of retail investors skyrockets, there is a need for greater awareness around investor rights, market structures, and the growing array of investment products. Investors today have access to a variety of information channels but are often exposed to unsolicited advice and promises of quick gains, leading to potential pitfalls. This series will help Educate Investors, Promote Market Integrity, Enhance Market Confidence.

Tune in to the "Wealth & Beyond" podcast series and empower yourself with the knowledge to navigate today’s financial markets responsibly.

About BSE: BSE Ltd., India’s leading exchange group, is celebrating its 150th year anniversary this year. BSE has been playing a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base. BSE provides an efficient and transparent market for trading in multiple asset classes including, equity, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, SME, startups and debt instruments.

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