Futures & Options

Option Pricing – The Factors Affecting Option Prices

Option Price involves two components – Intrinsic Value and Option Premium.Option Premium is the value we get by subtracting the Intrinsic Value of an Option from the Current Market Price of that particular Option. Only In-the-Money Options have Intrinsic Value (explained below).Time Value of Option and Uncertainty in …
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Understanding Futures Trading

Futures make one of the two segments in Derivatives Trading,other being the Option Trading.Futures are quite popular among a section of traders who like to play the financial markets with cash leverage.Futures Trading is not available for all the stocks listed on a stock exchange.It is for the …
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How to Find a Cheap Option in Option Trading

Options are a low risk trading tool.In Derivatives or Futures & Options segment. They carry significantly lower risk as compared to Futures Trading. This is because in Options Trading,you can not loose more than the ‘Premium’ you pay to buy an Option.Here your reward or profit potential is …
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Options Trading-What are Options

Options make a lucrative trading tool for the speculative traders.The reason is unlimited profit potential and limited risk in Option Trading. Being a Derivative, Options allow traders to play the market both ways,for upside as well as downside.This property of Options makes them useful to the investors also,as …
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