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Are you looking forward to starting trading in Future and Options? But before that, you have to know the basics of trading in Futures and Options. Get a basic idea about how trading in this segment work and what is the difference between Futures and Options. Watch the presentation to get a quick overview of futures and options trading.<br>Visit website : https://choiceindia.com/derivatives-trading
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What Is Futures And Options Trading? Futures and Options Trading is a part of derivative trading where the value of the asset increases or decreases depending on the underlying asset. To make it simple understand futures and options separately each. Futures • In a futures contract the buyer makes a contract with the seller to buy certain asset at a specific price based on his own speculation to which the seller agrees. • The buyer is supposed to buy that asset at that specified price at the end of the time period irrespective of the market price at that point of time.
Options • In options the buyer has the right, but not the obligation to buy the contract at the current market price. • The buyer has to pay certain premium to the seller to buy the contract. • Unlike futures contract the buyer has the option to not sell at the pre decided price and sell it at the same price he bought in case his speculation about the market movement goes wrong.