Dear rakesh you must be knowing share trading similarily Option trading is also an instrument.
Option is a derivative product.
where we have to derive a number whether Nifty will go up or down.
Here we can earn money from both uptrend and also from down trend.
There are two option called Call option and put option.
when we think Nifty will go up we buy call option and we Earn money but when market goes down then also we can make money by buying put option.
I am posting one small article about Option Trading
An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.
To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.
The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.
I am very happy to learn that you have earned so handsomely.I am not suprised at all as I know there are big earning opportunities in this form of trading. But what I tried to hint at in my earlier post is the risk element for the new comer. You must very experienced in this and have the opportunity to learn the nuts and bolts of it. A derivative being subordinate product whose values are dependent on the underlying, is mostly used as a hedging technique. I have gone through your last post which covers the subject well! Thanks!
rAKESH IN FUTURE TRADING YOU CAN EXPECT profit when the price of that stock or nifty will go up then you make Profit,but there is big risk because it involves of huge money, Option trading is best for small investor who can invest Rs10000 .
From the word option you can understand you have the option whether you think market moves up ward or down ward
Who ever want short term investment then go for Option Trading with fertilizer company call option because Budget is coming and in every Budget Government declare some subsidy to fertilizer companies.
This is a funny type of poll where I would like to see how you people vote and what are your views regarding the same. It is funny type of a question but still good to know what you people have to say about it. So go ahead friends and caster your vote.
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