What is Volatility Index ?

Volatility Index is a measure of market’s expectation of volatility over the near term. Volatility is often described as the “rate and magnitude of changes in prices” and in finance often referred to as risk. Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options.

Volatility Index is a good indicator of the investors’ perception on how volatile markets are expected to be in the near term. Usually, during periods of market volatility, market moves steeply up or down and the volatility index tends to rise. As volatility subsides, option prices tend to decline, which in turn causes volatility index to decline.

India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.

BEFORE YOU INVEST YOUR MONEY, INVEST SOME TIME!

The trading activity in the stock markets have increased and more investors are investing in
the markets. However, it is important to note that there are risks associated with all markets
and investors should be vigilant and alert in their investment activity.

Here are some useful pointers to bear in mind before you invest in the markets:

• Make sure your broker is registered with the SEBI and the Exchanges and do not deal with unregistered intermediaries.
• All investments carry risk of some kind. Investors should always know the risk that they are taking and invest to match their risk tolerance.
• Do not be misled by market rumours, luring advertisement or 'hot tips' of the day.
• Take informed decisions by studying the fundamentals of the company. Find out the business the company is into, the future prospects, quality of management, past track record etc. Sources of knowing about a company are through annual reports, economic magazines, databases available with vendors.
• If anyone, including your financial advisor, advises you to invest in a company, be cautious. Spend some time checking out about the company before investing.
• Do not be attracted by announcements of excellent results / news reports, about a company. Do your own research before investing in any stock.
• Do not be attracted to stocks based on what an internet website, research reports, advisories promote, unless you have done adequate study of the company.
• Investing in very low priced stocks or what are known as penny stocks do not guarantee high returns.
• Be cautious about stocks which show a sudden spurt in price or trading activity.
• Any advice or tip that claims that there are huge returns expected, especially for acting quickly, may be risky and may lead to losing some, most, or all of your money.

WAP trading at NSE

NSE became the first exchange to grant permission to its members for providing WAP trading services. NSE has granted permission to one of its trading members M/s.Gogia Capital Services Ltd. to provide securities trading through WAP. This is the first WAP enabled online stock trading facility in the country.

The WAP technology has been harnessed jointly by NSE.IT and Bharti Telesoft using Bharti Telesoft's WAP interface and NSE.IT's E-broking products NeatXS/ iXS, leading to convenience of live stock trading for people on the move.