Options trading is synonymous with stock trading. But here the options contracts are traded for profits at a certain specified date.500 per crore offers this service and guides in every step.
There are two types of options namely call option and put option.
The former is used for buying assets and the latter for selling the assets.
The contracts can be classified based on the value of the assets.
It is cost efficient and is less risky. There are a variety of options to choose from based on the financial position. All these benefits can become fruitful by avoiding the trivial risk issues.
Though this is a daunting subject, with proper knowledge and guidance, trading can be done.
Options Trading Strategies
There are a plethora of options trading strategies.
A deep study and analysis is required to understand it. 500 per crore simplifies that process by exploring the options and finding the most suitable one.
Reusing the already owned stocks is a great option.
How to do an options trading in India.
If the price of an underlying stock is expected to go uphill, bullish strategies are used. Similarly, if it is expected to go downhill, bearish strategies are used.
If the trend of the price can’t be determined, neutral strategies are employed.
If strategies are chosen wisely, it will help in the growth of the shares. Assessing the risk and avoiding it also plays a crucial role.
Futures and Options Trading
A future is a contract regarding a stock which can be sold or bought at a later time and at a specified rate. The contract contains all the required details.
The basic requirement is a margin account. The futures trading is carried out in stock exchange.
500 per crore offers this service and aids in the trading.
Both future and options belong to hedging markets where the loss is minimal. Future markets move at a faster rate and they also come with expiration dates.
In case of any discrepancies between the Futures price and the already agrees price, the difference is settled.
The maintenance costs are low. They are a great option for managing risks. Though there are certain risks associated with it, they can be averted with proper planning, focus and being meticulous in taking decisions.