Trading in futures and options tutorial


All derivative contracts are cash settled in India, hence the actual movement of stocks does not happen. March 19, at Suppose I want to buy 20 lots.

But the answer to your query is because of Volatility. Thanks for the kind words Rohit. Be careful of what you buy on expiry day, especially due to the STT trap on options. The maximum loss I can incur is around and the maximum profit is aroundthen why do I need 59K?

There are so many different ways and means of playing the markets that it really is confusing for a newbie just trying to figure out where to start and what to do or not to do. However check this link for option calculator — http: August 13, at The call option is trading at

Do note in the stock markets, the premium changes on a minute by minute basis. All derivative contracts are cash settled in India, hence the actual movement of stocks does not happen. August 15, at 8:

Clearly the international markets have evolved a great deal since the OTC days. March 30, at 2: For buying options there are no margins, you only pay the premium in full. What happened to the other months?

I am still learning after studying all the theoretical now I am doing practical. August 28, at The underlying is Nifty 50 index, so it always makes sense to look at the underlying and develop your point of view.

April 18, at 3: In my opinion this particular corporate event triggered vibrancy in the Indian markets, creating some serious liquidity. August 30, at 2:

So when the price drops to 65 — you still need to honor the agreement and buy it at November 28, at 4: He would lose a lot of money if the land prices increases after 6 months right? August 28, at

July 25, at However do note, as per the agreement Ajay has to let go of Rs. October 17, at 4: Could you please eloborate the above explaination in terms of the lot size of 75 and actual Profit earned. There is no requirement for you to hold on to this till expiry.