Last Updated on January 1, 2022 by admin
Future And Option Trading Basics with Tips
What is future and option trading? How Future and option works? Future And Option Trading Basics With Tips in 2022. Learn basics of Stock market and earn money easily. F&O is a very good opportunity to earn money. But You have to learn all the basics and analysis before you start.
Future And Option Trading
Future and option Trading Basics – There are many options available to invest in the share market, two of them are–
- Option trading.
- Future trading.
If you are new or old in the share market, you too would like to do option trading like all the noises.
Read also : How to Earn Money in Share Market Daily?
The risk in option trading is less as compared to the future. There is no responsibility in option trading that you will have to sell it after you buy it. Today we will discuss about it in details.
In Future & options trading basics we will see what is the basics of future and option trading. Futures and options trading for beginners – This blog article will also help for those who are new in this field, how they will be able to do futures and options trading.
Must read : Upstox Refer And Earn up to1200 Rupees per Refer.
What is option trading | options meaning ?
What is Option Trading? This question comes to my mind who is new to the share market. option trading means you will get the right to buy the stock at one price but you will not have any obligation to sell the purchased stock.
The process of buying option stock is called a call and the restless one is called a put. The price of an optional stock is based on the price of that share.
Suppose the share of Tata Motors is 280, then the option call will get 9 or 10 rupees on it, but while buying this, you will have to buy or sell such lots.
The lot of Tata motors option call will be 500. If the company whose call option is bought, the share price of that company is low, then the cost of the call option will also work. And the price of the put option will increase.
Call option Meaning | What is call option?
What is the meaning of option call? The answer is that you put option stock at a specified time and an option contract that gives the owner the right. But not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time.
But in the share market, they do not give the right but the obligation to buy a stock, bond, commodity or other asset or instrument at a specified price.
The direct meaning of call option is not to buy a stock through option trading. If you buy an option call of a stock, then it happens up to a three limit, after that its price becomes useful. If option call price you can sell it to make big tab profit.
Put Option Meaning | What is put option?
In put option you can buy put for a fixed time and sell it later. The restless put option is called the strike price. In this also you do not have any obligation that you have to buy put or sell put. If you are getting profit then you can sell it.
How to do Option Trading? Option Trading Strategies
You can also do option trading online. You have to open a Demat account, then you can do future and option trading.
Open Demat Account With Upstox.
Future Trading meaning | What is futures trading?
A futures market is an auction market in which participants buy and sell commodities and futures contracts for delivery at a future date. Futures are exchange-traded derivative contracts that lock in a future delivery of a commodity or security at a price set today.
Future trading means that you buy and sell commodity and futures contracts for delivery at a future date. These are derivative contracts that lock in a future delivery of a commodity or security at a price set today.
In futures trading, the buyer is obliged to buy or sell it at the specified time. The price that is set to buy in the future is called the future price. The scheduled time is called the pre-livery date.
In this also you will not have to buy the share in the prescribed lot. The price of the future share would be determined on the basis of the listed share price on the share market.
Difference Between Future And Option trading
1. In futures you have to buy by law at a fixed price, but you can do it according to you in option trading.
2. Futures are high risk, there is work risk in option trading.
You can sell put and call option at any time but in future you have to sell it within the stipulated time.
Read more :