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The put call ratio is a popular metric used by traders and investors to gauge market sentiment and potential trends. It measures the volume of put options traded relative to call options, providing insights into whether investors are generally bearish or bullish. A high put call ratio indicates that more put options are being traded, which typically signals a bearish outlook, as investors are hedging against or betting on downward price movements. Conversely, a low put call ratio suggests a bullish sentiment, with more call options being traded, indicating optimism about future price increases. Traders use the put call ratio to assess market sentiment and identify potential reversals or trend continuations. By monitoring this ratio along with other technical indicators, traders can make more informed decisions about their trades and manage risk effectively. Overall, the put call ratio is an essential tool for understanding market dynamics and predicting short-term price movements.
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The put-call ratio is a widely used metric in financial markets to assess investor sentiment by comparing the volume of put options to call options traded.. We are the best Education service near Delhi
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