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Jane Street’s Rs 4.3 crore job offer to IIT student sheds light on options trading inequities

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[hfe_template id='11223'] [ad_1] Global trading powerhouse Jane Street’s recently made Rs 4.3 crore job offer to an IIT Madras student, reflecting the immense profitability of high-frequency trading firms operating in global financial markets. Meanwhile, this lucrative world contrasts sharply with the reality faced by retail traders, who continue to suffer heavy losses in the cutthroat game of options trading. Often touted as a lucrative opportunity for quick gains, options trading operates as a zero-sum game—profits for some come directly at the expense of others. This dynamic often leaves small retail investors, who are drawn in by the high-risk, high-reward proposition, at a disadvantage. Recent data from the Securities and Exchange Board of India (Sebi) revealed the dire consequences for retail investors venturing into this arena. Sebi’s study revealed that 93% of retail traders in options markets incurred losses between FY22 and FY24, amounting to a staggering Rs 1....

After falling for 4 weeks, a pullback is possible in Nifty. Here’s why

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[hfe_template id='11223'] [ad_1] The recent downturn in the Nifty 50 has raised concerns amongst market participants. Historically, the Nifty has shown a pattern of retracing to its moving averages before resuming its uptrend. However, we are currently witnessing a more pronounced decline, with the index dropping below its 100-day moving average. This has prompted questions about whether the market’s current fall is the start of a deeper trend down the hill or simply a flash in the pan before the uptrend resumes. Now let’s try to figure it out with the help of some data. Nifty has declined for 4 weeks in a row. This is a rare occurrence. An analysis of all such past occurrences from 2010 reveals an optimistic outlook. Historically, when the market has corrected by 5% or more over four consecutive weeks, the Nifty has shown strong forward returns over the subsequent months. The table displays the 1-month, 3-month, and 6-month forward returns along with the probability of ...