The Put-Call ratio is the ratio of the volume traded of put options to the volume traded of call options.
The Put-Call ratio is a trading indicator derived from the options market and used by traders as a market sentiment tool. It is used to gauge the general market sentiment as well as the sentiment of individual securities.
As an example, a stock trader can use the Put-Call ratio of a given stock, which the volume of put options traded for that particular stock divided by the volume of call options, to gauge whether investors view of that stock is bullish or bearish.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
