What if (FII,DII,PRO,Client)

FIIs DIIs?

If I am an FII,?

I have lots of cash holding of stocks...Now I can do multiple things with it,?

In a bullish market-?

1)Keep holding it and hedge them with Index put options.

2) Sell out of the money call options and if it goes at risk, exit the holding and pay MTM off.

In bearish Market-?

1) Keep selling in futures, so that the value decline in cash holdings is offset.

2) sell in futures and dump the stocks even more and square off at even a lower level, and then again buy stocks.

In a sideways market-?

1) buy puts, to protect the downside.

2) sell futures offset with cash holdings?

3) buy call options to earn any upside.

The current scenario is of a sideways market... And the datasheet data gets circulated regarding PRO FII DII positions, which doesn't include their holdings in cash, that's why most of the reading of people is not correct.

Hope now you will be able to understand that data better. FIIs are hedged on 2 legs and take profit on only one leg

If I am a DII-?

Whether I am a mutual fund, LIC, bank, NBFC, pension fund,?I am not allowed to take any naked position in derivatives. And cash buying and selling will only depend on my investment policy and money inflow or outflow from the public on a given day.

?If I am a Pro-?

I am a liquidity provider of the system and I have my Algo and HFT(High-frequency trading) systems in place, most of the orders in the system are because of me but not all trades belong to me. And I don't create wall-like FIIs or DIIs,?I play the frequency and momentum through my Algo systems?

If I am client-?

If I am an HNI, I play futures and hedge them with options and use my holdings as margin to the broker. My cash is parked in debt funds or FDs, at times my FDs are also given to the broker as margin.

If I am a retail client-?

I want to become rich as soon as possible, realizing that the stock market is the solution to every problem. But then I am introduced to tipsters and people selling Holy Grail. And then I either lose some money or earn some money. But what makes me different from all the other players is, I have a burden of emotion, which is my biggest enemy. And whether I am an Investor or trader, I always forget logical thinking and rely on emotions. That's why I sell stock when it is going up and I buy them when they have already formed top. In trading, I take a position and then think about whether it's right or wrong. Not realizing that stop loss is not there and I lose money for my next 4 trades by not putting stop losses.