Yes hedge will be in loss but your portfolio will balance that, so ideally you're not making any profit (may be slight loss due to Overhedge).let's say mkt went up to 18500. U lost 1k in futures but portfolio gained.. U need to short again 4 lots if u think mkt is overvalued.. This is the conviction u need make..
The calculation part explained here is really very helpful for investors. Thanks indeed for sharing this knowledge. Retail investors are not aware of such management techniques and risks their hard earned money by entering at the high end of the markets only to loose them to larger players. Would requests you to come out with more of such videos in future as well. Thank you once again...
Hi, Thanks. But, could you please help make similar video on *"Hedging"* using options...!!! Also, what's the cost part for four lots in shorting *Nifty* Future...??? /month
This is fine when market falls and you get M2M profit in futures. But incase market rises, the loss in futures is instant but for activating the hedge we have to sell the equity else it may fall the next day
Good knowledge sharing and very useful. But when I am multiplying Stock Beta X Stock Weightage i.e., 0.92 X 2.72 its coming 2.50, why, can you please help me where I am going wrong.
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One question - you have shown that profit will come if nifty goes down. But what happens when nifty goes up - then the hedge will be in loss ?
Yes hedge will be in loss but your portfolio will balance that, so ideally you're not making any profit (may be slight loss due to Overhedge).let's say mkt went up to 18500. U lost 1k in futures but portfolio gained.. U need to short again 4 lots if u think mkt is overvalued.. This is the conviction u need make..
Excellent learning, I waited for this concept to know. Many thanks sir.
You are most welcome
You made hedging so simple with your steps and formulas..Great sharing👍
The calculation part explained here is really very helpful for investors. Thanks indeed for sharing this knowledge. Retail investors are not aware of such management techniques and risks their hard earned money by entering at the high end of the markets only to loose them to larger players. Would requests you to come out with more of such videos in future as well. Thank you once again...
Thanks for your kind words. Keep watching.
Hi,
Thanks.
But, could you please help make similar video on *"Hedging"* using options...!!!
Also, what's the cost part for four lots in shorting *Nifty* Future...??? /month
Sir , what if we had shorted nifty, and it does not fall
Sir, its very useful
Glad to hear that. Keep Watching
What if the future you shorted goes against your strategy and market makes new high ? What to do then ?
Thank you. Useful.
Glad it was helpful!
Very Good explanation. Please make a video on how to close(complete) the hedging after we do a short.
Noted
Thanks 👍
Why can't we buy ATM pe of far month for hedging?? Is it good?
Thankyou 🙏
good video and it is a must needed strategy for investors!
Glad you think so!
This is fine when market falls and you get M2M profit in futures. But incase market rises, the loss in futures is instant but for activating the hedge we have to sell the equity else it may fall the next day
The content just with future strategy, otherwise, it's really great at beginners level.. Thanks a lot for mket education..
Glad you liked it
Awesome explained, job well done ✅, you are very well experienced
Glad you liked it!
Useful insights
Glad you think so!
What happens if market goes up with this hedging?
Investing 40Lakhs(approx) and making merely 14k profit is peanut,,,,,,,,, Regards
You didn't get it, it's hedging means buying protection to your portfolio not an earning engine/ machine!
Good knowledge sharing and very useful. But when I am multiplying Stock Beta X Stock Weightage i.e., 0.92 X 2.72 its coming 2.50, why, can you please help me where I am going wrong.
Chart
Here you have taken only one situation, what will happen if nifty crosses above 17500
Hedge is only needed if Nifty falls below 17500. Above 17500 you will exit from the futures position.
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