Filter by Categories
Accounting
Banking

Derivatives




Put/ Call Ratio Indicator


A tool which measures market state in terms of the dollar-weighted volumes traded, i.e., whether it is oversold or overbought. Put another way, this tool relates the total put value (put volume × put market price) to the total call value (call volume × call market price). As such, if this ratio is greater than 2.00 over a specific trading period, then the market is defined as being oversold. If it is less than 0.50, then the market is defined as being overbought.

Any value in between is defined as being a neutral reading.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*