Tag: Futures & Options

Futures & Options (F&O) are a lucrative trading tool for the traders. They are different from the cash segment trading. They make the derivatives segment.

Derivatives literally means ‘derived from’. Futures & Options are derivatives derived from the underlying stocks.

The reason for the popularity of F&O is the high cash leverage they yield to traders. They enable traders to take big market positions with limited cash available.

This helps in reaping substantial profits with limited cash. An important thing to mention here is that losses are also substantial in Futures & Options trading.

Futures trading is more risky as compared to Options trading. Profits and losses are unlimited in Futures trading. In Options trading, the profits are unlimited while the losses are limited if you buy Options. It is vice versa if you sell Options.

Futures & Options trading requires very careful planning and technical research before you jump into trading. If done with discipline, it can be highly rewarding to traders.

How Margin Trading can Increase Your Profit

Margin Stock Trading is one of the stock trading tools. It is also called as Margin Trading. It makes an important part of trading strategy for the professional traders. We will find out here what is Margin Trading? What does buying a stock on Margin Mean to you? Margin Trading …

What is Futures Trading in Stock Markets

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 stock …

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 unlimited.Of course,while …

How To Trade Options

Options make a lucrative trading tool for the speculative traders.The reason is unlimited profit potential and limited risk in Option Trading.But it can be risky if you do not know how to trade Options. Being a Derivative, Options allow traders to play the market both ways,for upside as well as …

Futures & Options

Futures & Options are the trading tools for short term trading in the financial markets.They constitute the Derivatives segment of the markets.Derivative is something which has been derived from an underlying.In case of Futures & Options,the underlying is the stock or currency or any other security.These underlying securities trade in …