Markets: A Rigorous Course

M00 · Problem 9 ★

Choosing product, order type and validity

For each intention, choose the product (CNC, MIS, NRML, MTF), order type and validity, and say what could go wrong: (a) Buy 50 shares of a company to hold for several years, without paying more than ₹1,480. (b) Profit from an expected fall in a stock today; you do not own it. (c) Hold one Nifty futures lot for about two weeks. (d) Buy a stock tomorrow only if it trades above yesterday's high of ₹1,020, paying at most ₹1,025; you will be unavailable during market hours. (e) Exit a long option position if its premium falls to ₹42. (f) Protect a delivery holding against a fall below ₹480 while you travel for three weeks.

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