SBI Securities Interview Questions, Process, and Tips

Hedging involves reducing risk by taking an offsetting position. Holding refers to keeping a position open for a longer period of time. PE and CE refer to options contracts, while ATM and OTM refer to the strike price of an option.

• Hedging involves taking an offsetting position to reduce risk. For example, if you own a stock, you can hedge your position by buying a put option.

• Holding refers to keeping a position open fo...read more

Hedging is a risk management strategy. SBI Cap offers various hedging solutions to mitigate financial risks.

• Hedging involves taking an offsetting position in a related security to reduce the risk of adverse price movements.

• SBI Cap offers hedging solutions such as currency hedging, interest rate hedging, and commodity hedging.

• Currency hedging involves using financial instruments to manage the risk of currency fluctuatio...read more

Interested in stock market due to Nifty 50 top companies. Market cap is the total value of a company's outstanding shares.

• Nifty 50 top companies are the most valuable and actively traded companies in India

• Stock market provides opportunities for investment and growth

• Market cap is calculated by multiplying the total number of outstanding shares by the current market price of one share

• Market cap determines the size of a c...read more

I recommend people to diversify their investment portfolio and stay updated with market trends.

• Diversify your investment portfolio to reduce risk

• Stay updated with market trends and news

• Consider long-term investment strategies

• Consult with a financial advisor for personalized recommendations

Investing in stock market can provide higher returns than traditional savings methods.

• Stock market investments have historically provided higher returns than savings accounts or bonds.

• Investing in a diversified portfolio can help mitigate risk.

• Stocks can also provide ownership in companies and potential for dividends.

• Long-term investing can help grow wealth and beat inflation.

• However, stock market investments also come...read more

A financial contract whose value is derived from an underlying asset or group of assets.

• Derivatives are used for hedging or speculation.

• Examples include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• They can be based on various underlying assets such as stocks, bonds, commodities, or currencies.

Stocks, bonds, and debentures are all types of investments that allow individuals to earn money by lending money to companies or governments.

• Stocks represent ownership in a company and provide the potential for capital gains and dividends.

• Bonds are debt securities that represent a loan made by an investor to a borrower, typically a company or government, and provide a fixed rate of return.

• Debentures are similar to bond...read more