Stock Option Tips and Stock Future Tips

Derivatives are the financial instruments whose value is dependent on the value of the underlying assets, which may be commodity, currency and stock etc. You can trade in the derivatives segment based on the Stock Future Tips and Stock Option Tips from expert advisors.

Before embarking the journey in stock market you must have knowledge of this field otherwise you may get loss. Without having information or clear difference between options and futures you cannot get a profit. It is very important to have knowledge about various segments, if you are going to start your journey in this field. The difference between options and futures is given below.

The fundamental and main difference between options and futures is that they vary on the obligation between buyer and seller. In options the buyer has the rights to buy but not obligation to buy whereas in the futures the buyer has to buy before expiring a specific date. In other words it is the contract between buyer and seller at a specific date and price.

What is Options Trading?
Option gives the right to the buyer not the obligation to buy or sell a certain asset at certain price at any time during the span of the contract. The working strategy of option is as same as the working strategy of insurance companies because the buyer has to just give a premium amount of certain asset. In options, the buyer is free from obligation and always be in the safe zone because if the contract goes down or in loss then the loss of buyer is only of his premium amount and if the contact goes up then the entire profit will go for buyer. It is no risk game for buyers and that is why the number of buyers is more than the number of sellers.

What is Futures Trading?
Future is also the contract between buyer and seller but in the futures, the buyer is prohibited to obligation. A future contact gives the buyer the obligation to buy a specific asset and similarly it gives the seller the obligation to sell and deliver the specific asset at a certain future date. In the future the buyer and seller both are not free from obligation because they have to fulfill their contract at a certain date. This is high risk game as compared to options because once you contract in
future then you have to bear entire loss if the trend goes down. Again, it is recommended that, whether you invest in futures or options, you must have clear idea as well as vision about futures and options. Without having preliminary knowledge this may not be beneficial for you. Never go ahead a single step in any field without having knowledge about it.

If you don’t have sufficient knowledge about this field, you can trade on the basis of Stock Future Tips and Stock Option Tips from expert advisors like TradeNexa.