Future options trading basics india west


That is, its valueis derived from something else. As the name suggests it derives its value from an underlying asset. For Ex-a derivative, may be created for a share, or any material object. He will make a profit of Rs.500 if the price of Satyam Computers rises by Rs 500. If the price remains unchanged Anil will receive nothing. If the stock price of Satyam Computers falls by Rs 800 he will lose Rs 800.As we can see, the above contract depends upon the price of the Satyam Computers scrip, which is the underlying security.

Similarly, futures trading can be done on the indices also. Futures contracts are derivative instruments very similar to forward contracts but they differ in some aspects.Futures contracts are traded in futures exchanges worldwide and trrading a wide range of commodities such as agriculture produce, livestock, energy, metals and financial products such as market indices, interest rates and currencies. HedgingProducers and manufacturers can make use of the futures market to hedge the price risk of commodities that they need to purchase or sThe stock trading landscape is very different future options trading basics india west than it was a few years ago.

Imdia best Equity trading features and tips. )What are futures and options. An options contract offers the buyer the right to buy, not the obligation to buy at the specified price or date.




Future options trading basics india west

Future options trading basics india west