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Options and Derivatives Trading on NSE
Rank: Chief Joined: 8/4/2010 Posts: 8,977
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murchr wrote:NAIROBI (Reuters) - Kenya's Nairobi Securities Exchange has delayed the roll out of a derivatives market to this quarter from the earlier target date of the second quarter to adequately prepare the market for the launch, it said on Wednesday. NSE plans to offer derivative instruments, becoming the second bourse in Sub Sahara Africa to do so after Johannesburg, in a bid to boost liquidity. [ID:nL5N0W81II] "The launch has been deferred slightly. We are targeting this quarter," the bourse said. "It is imperative that prior to launch of this product, the market understands clearly the positive impact of derivatives as tools to manage investment risk," it said. Progress had been made towards the setting up of the market, the NSE said, citing the establishment of a clearing house, a guarantee fund and an oversight committee made up of industry professionals. NSE wants to become the third biggest exchange on the continent, up from fifth currently, its chief executive, Geoffrey Odundo told Reuters in March. The Kenyan bourse serves as an entry point for foreign funds looking to tap into fast economic growth rates in east Africa but it currently ranks behind South Africa, Nigeria, Egypt and Morocco in terms of market size. (Reporting by Duncan Miriri; Editing by James Macharia) Someone is jittery. Perfect timing when the market is sliding! The next NSE20 bull cycle will definitely take out 6161 as derivative gain popularity.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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mibbz wrote:mukiha wrote:mukiha wrote:So, Jack has a million SCOM shares which he promises to sell to John at 7 bob each On 1st June. As a sign of commitment, John pays Jack 10 cents each....100k in total....
SCOM declares 30bn profit and demand shoots to 10 bob.....shares are short supply....but Jane wants some, so she goes to Jack and he tells her that he had promised to sell to John....so she goes to John and offers him 50cents for the right to buy from Jack....he pockets the 500k and transfers the rights to Jane
Jane rushes to Jack, buys the 1m shares at 7m and then sells them in the open market and makes 2.5m
All so fine....until Jane decides to sell the rights to Joe at one bob each instead of executing them [making 500k], and Joe sells them over to Jill at 1.50 [also making 500k] and Jill sells to Jim at 2 bob [another 500k] ...and so on......eventually we have a market for these rights which in reality don't have any hard value...they are just a promise to do something!
... and I could also go to Jim and promise him that I will buy his rights at 2.50 on May 31....thereby making a promise to buy a promise to buy SCOM shares.... the whole thing loses meaning and because the distance from reality (SCOM shares) has increased greatly, the propensity to break the promise increases as well.... it is psychologically easier to shoot a person with a gun from 10m away that it is to hack him with a panga from 1m away! thanks for the simple explanation.Alwayys wondered what derivatives and options involved and i can see its all about playing smart with imaginary holdings.We definately are not ready for such,in fact market can easily crush Thank you too @Mukiha for the easy-to-understand example. Yes, it sounds risky but it does sound exciting too. Mimi ndani
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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3Q ... more likely in 4Q Or a soft launch in 3Q. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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The Capital Markets Authority (CMA) is stepping up preparations for the introduction of an exchange for derivatives, which are used for hedging risk. The CMA has partnered with the Dubai Financial Services Authority to train local players on how the proposed exchange will work. The derivatives market is one of the key targets for the CMA and so far the regulators has set out the rules for market players. http://www.businessdaily.../-/14ng978z/-/index.html"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 6/22/2015 Posts: 51 Location: Nairobi
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maka wrote:sl8r wrote:SOOOO,
I was thinking, is it viable to trade in options and derivatives on this here NSE. My understanding is that the Johannesburg Stock exchange does so, albeit its 400+ listings compared to the NSE's about 50, however I think the market here is speculative enough to engage in this....
what do you all think?? ...bado we still havent got the right structures to implement options and derivatives trading...trading in equities and fixed income is still a mess we need to sort that out first. Do we have the right structure now?  A Theory of Everything.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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Hapa Kuna kizungumkuti LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: New-farer Joined: 5/20/2010 Posts: 69
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aljazeera wrote:maka wrote:sl8r wrote:SOOOO,
I was thinking, is it viable to trade in options and derivatives on this here NSE. My understanding is that the Johannesburg Stock exchange does so, albeit its 400+ listings compared to the NSE's about 50, however I think the market here is speculative enough to engage in this....
what do you all think?? ...bado we still havent got the right structures to implement options and derivatives trading...trading in equities and fixed income is still a mess we need to sort that out first. Do we have the right structure now? Some of it is ready, we can trade futures for now NSE gets nod for futures exchange
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Rank: Member Joined: 8/15/2015 Posts: 817
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sl8r wrote:aljazeera wrote:maka wrote:sl8r wrote:SOOOO,
I was thinking, is it viable to trade in options and derivatives on this here NSE. My understanding is that the Johannesburg Stock exchange does so, albeit its 400+ listings compared to the NSE's about 50, however I think the market here is speculative enough to engage in this....
what do you all think?? ...bado we still havent got the right structures to implement options and derivatives trading...trading in equities and fixed income is still a mess we need to sort that out first. Do we have the right structure now? Some of it is ready, we can trade futures for now NSE gets nod for futures exchange is this some form of tease or what ?LETS GET MOVING NSE !!!!!!!!!!!!!!!!. damn those futures!
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Rank: Member Joined: 1/13/2012 Posts: 139
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Lets this thing start. We need a market that has volumes, volatility and where one can make money long or short. Day trading shall be a career and expansion of capital markets for the better. 
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Rank: New-farer Joined: 5/20/2010 Posts: 69
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