What is Max Pain?

What is Max Pain?

Max Pain is the price at which the underlying asset would cause the highest financial loss to the option buyers at the end of contract expiration. Price of the underlying asset tends to gravitate towards this strike price as the expiration date approaches.
    • Related Articles

    • What is Basic Service Demat Account (BSDA)?

      Most of the clients who don’t invest regularly in stocks, bonds, gold ETFs, IPO, etc may find maintaining our demat accounts a pain because of the charges. The costs, such as annual maintenance and statement charges, make these accounts relatively ...
    • What is the minimum and maximum limit for investment?

      The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF), and 20 kg for ...
    • How to place a Stop Loss order?

      A stop-loss order is usually placed to minimize losses on a position. It allows you to place an order only when the market price of the stock reaches or crosses a specified price point also known as the ‘SL Trigger Price’. There are 2 types of ...
    • What is the maximum time allowed to keep an NCD open?

      The maturity period for an NCD depends upon issuance of the debenture e.g. 3 years, 5 years, 10 years etc. The maturity of NCD can’t be extended beyond issuance of the debenture. This gives you flexibility to choose a fixed income between short and ...
    • Is there any maximum duration one can hold "Buy Now Pay Later" stocks?

      You can hold your stocks for an indefinite period.