Understanding Put Call Ratio PCR in Trading

PCR or Put-CallRatio is a financial indicator that measures the ratio of put options traded to call options traded on specific asset or index within a given timeframe

What PCR Indicates

Below 10 Low PCR Indicates a bullish sentiment suggesting more call options are being traded relative to put options This may imply optimism about rising prices

Above 10 High PCR Indicates a bearish sentiment suggesting more put options are being traded relative to call options This may imply caution or pessimism about falling prices

PCR is used by traders to gauge market sentiment and potential future price movements based on options trading activity

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