An option gives the buyer right but not the obligation to by an asset at a specific price at any time. A future contract gives the buyer the obligation to purchase asset at a specific future date. The underlying position is much larger for future contract.
One can trade in the futures segment and options segment based on Stock Future Tips and Stock Option Tips respectively from the expert advisors.
Future is a contract to buy or sell underlying assets for a specific price at a predetermined price. Future contract Features include Buyers, Sellers, Price and Expiry
Some of the most popular assets are equity, stocks, indices, currency and commodity.
Options contract are instrument that give the holder of the instrument the right to buy or sell the underlying asset at a pre determined price.
Call option give the buyer the right to buy the asset it a given price and put option give the buyer a right to sell the Asset at the strike price to the buyer.
If you may start trading in the stock market you should know about this list:
Learn about future and option segment before start trading and observe market conditions. If you learn everything you can enter in the right trade and gain good profit.
Futures and options both are equally attractive instruments. Options have much more opportunities to protect your capital and a future trader must get his right direction to be in profit.
Futures are good to trade. Future segment works in a disciplined atmosphere. In order to trade in future you need more margins as compared to options. A profit in options is always more profitable in percentage terms, options are relatively safer for trader.
Futures and options are two of the most popular derivatives. Futures and options are both popular. Future contract have been primarily used by commodity traders such as Soya beans, wheat, beans, crude oil. The future contracts are more liquid then options contract. Futures trading can be done by different types of trading strategies when compared to option trading.
Future trading has some advantages over options. Future trading is not suitable for everyone. Future segment has the ability to make a big profit in short of time limit. Future traders are able to better position in managing risk and profits then compare to options trader.
Every segment is known to carry varied from of risks. Your profit and loss will also get affected depending on the strategy you adopt. If you are trading in futures, your risk will increase depending on leverage you have taken as against the exchange. To trade effectively in the futures market one can trade on the basis of Stock Option Tips and Stock Future Tips from expert advisory firms like TradeNexa.