General Platform Questions

TradePulse is an advanced market analytics platform specifically designed for commodity options trading. It combines real-time data analysis, machine learning predictions, and advanced visualization tools to help traders make informed decisions.

Key Benefits:
  • Real-time market data tracking and analysis
  • AI-powered price predictions and trading signals
  • Advanced visualization tools for complex market data
  • Comprehensive technical analysis features
  • Risk management and position monitoring capabilities
1. Market Analytics
  • Real-time OI tracking
  • Heatmap visualizations
  • 3D option chain analysis
  • Volatility cone analysis
2. AI-Powered Features
  • Price predictions
  • Sentiment analysis
  • Market regime detection
  • Anomaly detection
3. Risk Management
  • Monte Carlo simulations
  • Greeks analysis
  • Position limit monitoring
  • Margin requirement calculations
4. Technical Analysis
  • Support and resistance identification
  • Divergence analysis
  • Market regime detection
  • Historical data analysis
1. Initial Setup
  • Create your account through an authorized invitation
  • Complete the verification process
  • Access the main dashboard
2. Basic Navigation
  • Select your preferred commodity
  • Choose expiry dates
  • Set strike ranges for analysis
3. Key Sections
  • Market Overview: Current market status and key metrics
  • Analytics Dashboard: Detailed analysis tools
  • Prediction Center: AI-powered forecasts
  • Risk Management: Position and risk analysis tools
Metals
  • Gold (GOLD)
  • Silver (SILVER)
  • Copper (COPPER)
  • Zinc (ZINC)
Energy
  • Crude Oil (CRUDEOIL)
  • Natural Gas (NATURALGAS)
Mini Contracts
  • Gold Mini (GOLDM)
  • Silver Mini (SILVERM)
  • Crude Oil Mini (CRUDEOILM)
  • Natural Gas Mini (NATGASMINI)

Each commodity comes with:

  • Full option chain analysis
  • Specific strike price increments
  • Customized margin requirements
  • Commodity-specific analytics
Market Data Updates
  • Open Interest: Every 1 minute
  • Price Data: Real-time
  • Greeks Calculations: Every 3 minutes
  • Technical Indicators: Every 5 minutes
AI Predictions
  • Price Forecasts: Every 15 minutes
  • Sentiment Analysis: Real-time on request
  • Market Regime Updates: Every 30 minutes

Core Market Metrics

Open Interest represents the total number of outstanding derivatives contracts that have not been settled. It's a crucial indicator of market sentiment and liquidity.

Practical Example:

Let's say for GOLD 60000 CE (Call Option):

  • Morning OI: 1000 contracts
  • Afternoon OI: 1500 contracts
  • Change in OI: +500 contracts

This indicates:

  • New positions being created
  • Growing interest in this strike price
  • Potential bullish sentiment if price is also rising
How to Use OI in Trading:
  • Rising OI + Rising Price = Strong Uptrend
  • Rising OI + Falling Price = Strong Downtrend
  • Falling OI + Rising Price = Weak Uptrend
  • Falling OI + Falling Price = Weak Downtrend
Key OI Signals in TradePulse:
  • OI Build-up at specific strikes
  • Sudden OI changes
  • OI distribution patterns

Implied Volatility measures the market's expectation of how much a commodity's price might move. It's derived from option prices and is crucial for options trading decisions.

High IV Scenario:

GOLD options showing 25% IV means:

  • Market expects significant price movement
  • Option premiums are expensive
  • Good for option selling strategies
  • Risk of rapid price changes
Low IV Scenario:

GOLD options showing 12% IV means:

  • Market expects stable prices
  • Option premiums are cheaper
  • Good for option buying strategies
  • Lower expected price movement
How TradePulse Uses IV:
  • Displays IV skew across strikes
  • Shows IV term structure
  • Tracks IV changes over time
  • Provides IV-based trading signals

PCR is a sentiment indicator that compares the volume or open interest of put options to call options. It helps gauge market sentiment and potential trend reversals.

PCR Interpretation:
  • PCR > 1.0 (More puts than calls):
    • Indicates bearish sentiment
    • Might signal potential bottom
    • Example: PCR = 1.5 means 150 puts for every 100 calls
  • PCR < 1.0 (More calls than puts):
    • Indicates bullish sentiment
    • Might signal potential top
    • Example: PCR = 0.7 means 70 puts for every 100 calls
Real-World Example:

For GOLD options:

  • Total Call OI: 10,000 contracts
  • Total Put OI: 15,000 contracts
  • PCR = 1.5 (Bearish sentiment)

If price starts rising despite high PCR:

  • Potential short covering rally
  • Bears might be trapped
  • Strong bullish signal

Greeks are mathematical measures of different risk factors in options trading. Each Greek measures a different aspect of risk in an option position.

Primary Greeks and Their Usage:
  • Delta (Δ):
    • Measures price sensitivity
    • Range: -1 to +1
    • Example: Delta 0.5 means option gains ₹0.5 for ₹1 increase in underlying
  • Gamma (Γ):
    • Measures Delta sensitivity
    • Higher for ATM options
    • Example: Gamma 0.02 means Delta changes by 0.02 for ₹1 move in underlying
  • Theta (Θ):
    • Measures time decay
    • Higher closer to expiry
    • Example: Theta -5 means option loses ₹5 value per day
  • Vega (ν):
    • Measures volatility sensitivity
    • Example: Vega 10 means option value changes ₹10 for 1% IV change
Practical Application in TradePulse:
  • Real-time Greeks calculations
  • Greeks-based position sizing
  • Risk assessment tools
  • Strategy optimization suggestions

Advanced Analytics Features

OI heatmaps provide a visual representation of Open Interest distribution across different strike prices and time periods, making it easier to spot areas of high activity and potential price movements.

Color Intensity Interpretation:
  • Darker Blue: Higher OI concentration
  • Lighter Blue: Lower OI concentration
  • Color transitions: Show OI build-up or unwinding
Practical Applications:

Example Scenario:

  • Strike Price 31000:
    • 9:30 AM: 1000 OI (Light)
    • 10:30 AM: 2500 OI (Medium)
    • 11:30 AM: 3500 OI (Dark)
    • Interpretation: Strong build-up, potential support/resistance
Trading Signals:
  • Concentrated dark areas: Strong support/resistance levels
  • Sudden color changes: Potential breakout/breakdown points
  • Pattern formations: Identify option writing/buying trends

3D OI visualizations offer a comprehensive view of option chain dynamics by adding time as the third dimension, helping traders understand market structure and sentiment changes.

Key Benefits:
  • Strike Price Analysis:
    • View OI distribution across all strikes
    • Identify most active strike prices
    • Spot OI concentration shifts
  • Time Progression:
    • Track OI changes throughout the day
    • Monitor build-up patterns
    • Identify time-based trading patterns
Example Visual Pattern:
  • Time: 10:30 AM
  • Strike: 31000
  • OI Peak Height: 5000 contracts
  • Volume Spike: 2000 contracts
  • Interpretation: Strong activity and potential pivot point

Volatility Cone Analysis helps traders understand if current volatility levels are high or low compared to historical patterns, aiding in options strategy selection.

Historical Volatility Ranges:
  • 5 days: 15-25% (Current: 20%)
  • 10 days: 18-28% (Current: 22%)
  • 20 days: 20-30% (Current: 24%)
Interpretation:
  • Above the cone: Overvalued options
  • Within the cone: Fair value
  • Below the cone: Undervalued options
Strategy Selection:
  • High volatility: Consider selling options
  • Low volatility: Consider buying options
  • Normal volatility: Use neutral strategies

Divergence analysis identifies discrepancies between price movement and technical indicators, potentially signaling trend reversals or continuations.

Regular Divergence:

Example:

  • Price making higher highs: 1000, 1050, 1100
  • OI making lower highs: 5000, 4800, 4600
  • Interpretation: Potential trend reversal
Hidden Divergence:

Example:

  • Price making lower highs: 1100, 1080, 1060
  • OI making higher highs: 4600, 4800, 5000
  • Interpretation: Trend continuation likely
Trading Applications:
  • Identify potential reversal points
  • Confirm trend strength
  • Time entry and exit points
  • Risk management decision support

AI & Machine Learning Capabilities

TradePulse employs multiple AI models to analyze market data and generate price predictions.

Data Analysis Components:
  • Historical price patterns
  • Volume and OI trends
  • Market sentiment indicators
  • Technical indicators
Prediction Features:

Example Output:

  • Current Price: ₹31000
  • Short-term Prediction (1 hour): ₹31150 ±50
  • Medium-term Prediction (4 hours): ₹31300 ±100
  • Confidence Score: 85%
Model Updates:
  • Real-time data incorporation
  • Dynamic weight adjustment
  • Continuous learning from market feedback
Technical Factors:
  • Price action patterns
  • Volume-price relationships
  • Momentum indicators
  • Volatility patterns
Market Structure Factors:
  • OI distribution
  • Put-Call ratios
  • Strike price concentrations
  • Option Greeks trends
Success Metrics:

Example Performance Metrics:

  • Directional Accuracy: 72%
  • Average Deviation: ±0.5%
  • Signal Strength: High/Medium/Low

TradePulse's sentiment analysis uses natural language processing (NLP) to analyze market sentiment from various sources.

Data Sources:
  • Market news
  • Trading volumes
  • Price action
  • Options activity
Analysis Methods:

Sample Output:

  • Overall Sentiment: Bullish (75%)
  • News Sentiment: Positive
  • Options Sentiment: Neutral
  • Technical Sentiment: Bullish
Trading Applications:
  • Trend confirmation
  • Entry/exit timing
  • Risk assessment
  • Position sizing
Signal Strength Categories:
  • Strong Signal (>80% confidence):
    • Multiple confirming indicators
    • Clear price patterns
    • Strong volume/OI support
  • Medium Signal (60-80% confidence):
    • Some confirming indicators
    • Developing patterns
    • Moderate volume/OI support
  • Weak Signal (<60% confidence):
    • Mixed indicators
    • Unclear patterns
    • Low volume/OI support
Validation Process:
  • Technical confirmation
  • Volume/OI confirmation
  • Sentiment alignment
  • Risk-reward assessment
Performance Tracking:

Example Metrics:

  • Success Rate: 68%
  • Average Return: 1.2R
  • Max Drawdown: 2.5R
  • Recovery Rate: 85%

Technical Analysis Tools

Market Regime Detection helps identify the current market state to adapt trading strategies accordingly.

Trending Markets:

Characteristics:

  • Consistent price direction
  • Strong momentum indicators
  • Clear OI build-up

Example Signal:

  • Price: Steady rise from ₹31000 to ₹31500
  • OI: Increasing by 15% daily
  • Volume: Above 20-day average
  • Regime: Strong Uptrend
Volatile Markets:

Characteristics:

  • Large price swings
  • High volume spikes
  • Rapid OI changes

Example Signal:

  • Daily Range: ±2% or more
  • Volume: 2x normal
  • IV: >30% increase
  • Regime: High Volatility
Range-Bound Markets:

Characteristics:

  • Clear support/resistance
  • Oscillating price movement
  • Stable OI levels

Example Signal:

  • Price Range: ₹31000-31500
  • OI: Stable ±5%
  • Volume: Below average
  • Regime: Consolidation

Monte Carlo simulation generates thousands of potential price paths to assess risk and probability of different outcomes.

Input Parameters:
  • Current Price: ₹31000
  • Time Horizon: 5 days
  • Volatility: 20%
  • Simulations: 10,000
Output Analysis:

Probability Metrics:

  • 68% chance: ₹30500-31500
  • 95% chance: ₹30000-32000
  • 99% chance: ₹29500-32500

Risk Metrics:

  • VaR (95%): -500 points
  • Expected Shortfall: -750 points
Trading Applications:
  • Position sizing recommendations
  • Stop-loss placement
  • Target setting
  • Risk management planning

The system identifies unusual market behavior that might indicate trading opportunities or risks.

Price Anomalies:

Example Detection:

  • Normal Range: ±1% daily
  • Detected: 2.5% move in 30 minutes
  • Volume: 3x average
  • Alert Level: High
Volume/OI Anomalies:

Example Detection:

  • Normal OI Change: ±10% daily
  • Detected: 25% OI increase at single strike
  • Time Period: 1 hour
  • Alert Level: Medium
Alert System:
  • Real-time notifications
  • Severity classification
  • Suggested actions
  • Historical context
Momentum Indicators:
  • RSI (Relative Strength Index)
    • Overbought: Above 70
    • Oversold: Below 30
    • Usage: Entry/exit timing
  • MACD (Moving Average Convergence Divergence)
    • Signal line crossovers
    • Histogram analysis
    • Trend strength confirmation
Volatility Indicators:
  • Bollinger Bands
    • Band squeeze: Potential breakout
    • Band expansion: Strong trend
    • Price touching bands: Support/resistance
  • ATR (Average True Range)
    • Stop-loss sizing
    • Volatility measurement
    • Trend strength analysis
Custom Indicators:
  • OI-based momentum
  • Volume-weighted indicators
  • Options sentiment indicators
  • Combined technical-fundamental signals

Risk Management

Position Risk Analysis:

Example Dashboard:

  • Position: Long 31000 CE
    • Delta Risk: ₹500 per point
    • Gamma Risk: ₹50 per point²
    • Theta Decay: ₹200 per day
    • Max Loss: Limited to premium
Portfolio Risk Metrics:
  • Total Delta: ₹2000/point
  • Margin Utilized: 60%
  • Risk/Reward Ratio: 1:2.5
  • Portfolio Beta: 1.2
Real-time Monitoring:
  • Position tracking
  • Risk limit alerts
  • Margin utilization warnings
  • Exposure analysis
ITM Options at Expiry:

Example Scenario:

  • Option: GOLD 31000 CE
  • Spot at Expiry: 31500
  • Result: Converts to futures buy @31000
  • Margin Required: ₹200,000
Devolvement Requirements:

Timeline:

  • T-2: 25% futures margin
  • T-1: 50% futures margin
  • T-0: 100% futures margin
Important Considerations:
  • Margin availability must be maintained
  • Auto square-off risk if margin insufficient
  • Futures position impact on portfolio
  • Additional margin requirements post-devolvement
Real-time Margin Monitoring:
  • Available margin display
  • Utilized margin tracking
  • Margin calls alerts
  • SPAN calculator integration
Margin Requirements by Product:

Example Calculations:

  • Options Buying:
    • Premium-based margin
    • No additional margins
  • Options Writing:
    • SPAN margin
    • Exposure margin
    • Additional tender period margin
  • Futures Trading:
    • Initial margin
    • Maintenance margin
    • Mark-to-market requirements
Alert System:
  • Margin threshold warnings
  • Position-specific alerts
  • End-of-day margin requirements
  • Expiry-related margin changes
Position Size Calculator:
  • Risk-based sizing:
    • Account risk percentage
    • Stop-loss distance
    • Position value calculation
  • Volatility-based sizing:
    • ATR-based position sizing
    • IV consideration
    • Market regime adjustment
Risk Management Rules:
  • Maximum position size limits
  • Correlation-based portfolio limits
  • Sector exposure limits
  • Overall risk exposure management
Dynamic Adjustment:
  • Market volatility based sizing
  • Account equity changes
  • Market regime considerations
  • Liquidity-based adjustments

Platform Usage

Price-Based Alerts:
  • Price level crossovers
    • Above/below specific price
    • Percentage moves
    • Price range breaches
Technical Alerts:
  • Moving average crossovers
  • RSI overbought/oversold levels
  • Volume spikes
  • Pattern completions
Options-Specific Alerts:
  • OI threshold breaks
  • IV percentage changes
  • Greeks threshold alerts
  • PCR ratio alerts
Alert Delivery Methods:
  • Platform notifications
  • Email alerts
  • Mobile push notifications
  • Sound alerts
Available Data Types:
  • Price History
    • Tick by tick (current day)
    • 1-minute (last 5 days)
    • 5-minute (last 30 days)
    • Daily (full history)
  • Options Data History
    • OI trends
    • IV surfaces
    • Greeks history
    • Volume patterns
Analysis Tools:
  • Interactive charts
  • Pattern recognition
  • Statistical analysis
  • Backtesting capabilities
Data Export Options:
  • CSV download
  • Excel export
  • Custom timeframe selection
  • Multi-format reports
Portfolio Management:
  • Multiple commodity tracking
  • Cross-commodity correlation analysis
  • Portfolio diversification metrics
  • Aggregate risk management
Comparative Analysis:
  • Side-by-side charting
  • Relative strength comparison
  • Spread analysis
  • Sector-wide trends
Trading Features:
  • Quick commodity switching
  • Multi-chart workspace
  • Cross-commodity alerts
  • Basket order capabilities
Heatmap Interpretation:
  • Color intensity meaning
    • Dark blue: High concentration
    • Light blue: Low concentration
    • Color transitions: Activity changes
3D Charts:
  • Surface plot navigation
  • Time-price-OI relationships
  • Volume profile analysis
  • Pattern recognition
Technical Charts:
  • Candlestick patterns
  • Indicator overlays
  • Drawing tools usage
  • Time frame synchronization
Custom Views:
  • Layout customization
  • Indicator combinations
  • Workspace templates
  • View saving and sharing

Market Understanding

Basic Formula:

MCX Price = International Price + Additional Costs

Additional Costs Include:
  • Currency conversion
  • Import duty
  • Trading costs
  • Local premiums
Example Calculation (Gold):
  • International Price: $1800/oz
  • Exchange Rate: ₹82/$
  • Import Duty: 12.5%
  • Base Price: ₹147,600/oz
  • With Duty: ₹166,050/oz
  • Final MCX Price: ~₹51,500/10g
Price Monitoring Features:
  • Real-time price disparity tracking
  • Arbitrage opportunity alerts
  • Premium/discount analysis
  • Currency impact calculations
Regular Market Hours:
  • Monday-Friday Schedule:
    • Opening: 09:00 AM
    • Closing: 11:55 PM
  • Special Sessions:
    • Pre-market: 08:45-09:00 AM
    • Post-market: 11:55-11:59 PM
Settlement Cycles:
  • T+1: Regular settlements
  • T+2: Physical delivery
  • Special timing for energy products
Trading Period Guidelines:
  • Peak activity periods
  • International market correlations
  • Settlement cutoff times
  • Holiday schedules
Bullish Patterns:
  • Price-Volume Relationship:
    • Rising price + Rising OI
    • High volume at support levels
    • Put writing at lower strikes
Bearish Patterns:
  • Price-Volume Relationship:
    • Falling price + Rising OI
    • High volume at resistance
    • Call writing at higher strikes
Consolidation Patterns:
  • Market Characteristics:
    • Stable OI across strikes
    • Decreasing volume
    • Balanced put-call activity
Price-Based Indicators:
  • Moving Averages
    • Short-term (9, 20 days)
    • Medium-term (50 days)
    • Long-term (200 days)
  • Support/Resistance Levels
  • Price Patterns
Volume-Based Indicators:
  • Volume Trends
    • Volume surges
    • Volume decline
    • Volume confirmation
  • OI Analysis
    • OI buildup
    • OI unwinding
    • Strike concentration
Volatility Indicators:
  • IV Analysis
    • Term structure
    • Skew patterns
    • Historical comparison
  • ATR Readings
  • Volatility Breakouts
Sentiment Indicators:
  • Put-Call Ratio
  • Option Pain Points
  • Market Breadth
  • Position Concentration
Pre-Expiry Preparations:
  • Margin Requirements:
    • Additional margin for ITM options
    • Tender period margins
    • Mark-to-market settlements
  • Position Review:
    • ITM/OTM status
    • Roll-over decisions
    • Square-off timing
Expiry Day Strategies:
  • Time decay optimization
  • Strike selection
  • Hedging considerations
  • Stop-loss placement
Post-Expiry Settlement:
  • Option settlement process
  • Futures rollover
  • Physical delivery handling
  • Margin release timeline