To trade in the option segment, one can trade on the basis of Stock Option Tips from expert advisors. If you want to prefer for lesser investment, then options trading is a great choice for you. NSE has announced 15 securities to the option segment from April. In May, there is an addition of 16 securities. If talking about June, there is addition of 5 more securities. This has also made a total of 200 securities till now. This is one of the positive developments in the era of market.
Types of option:
There are two types of option. These are 1. Call 2. Put.
1. Call: The first type of option is call option. It gives the buyers, right to purchase stock, which is underlying. In the case, when the given index at its present price, call of option can be bought.
2. Put: These types of an option allow buyers to sell out the share at its present price only. A call seller has right of obligations to give it to the buyer at present trending price. Here current price is higher than the previous price. If we are talking in terms of cash, the cash difference gets exchanged and nothing else.
A. Initial margin or worst case Scenario role:
An initial margin is based on the client level as well as at the gross basis on the clearing member level. The initial margin from the worst case scenario is regulated against the available worth of the member.
B. Exercise limits:
There are no exercise limits to keep trading in stock options. Through the derivative segment may describe following types of limits:
Assignment of option: It is always assigned to an option writer as on random basic at the very client level. The given system would use the same algorithm. There are some specific parameters of stock options market, these are as follows:
1. Short option minimum margin.
2. Net option value.
3. Cash settlement of premium.
4. Unpaid premium.
5. Worst scenario loss.