What is an Option?

In Indian Stock Market we can trade in

EQUITIES
DERIVATIVES


In DERIVATIVE we can trade in  FUTURES AND OPTIONS.


What is Option?

Option is contract between option seller and option buyer,

contract give right to buy or sell underlying stock at the strike price on or before expiry date.

Buyer must exercise his options before expiry date.

to activate you FUTURE AND OPTIONS ACCOUNT in your demat account you must submit

6 months bank statement or salary statements to your brokerage company.

If you have small amount in your account you can buy and then sell your options.

but if You want sell options ( i.e Option writing) you must have huge amount

depends on brokerage company.


OPTION WRITING OFFERS HIGH RISK..If you are 1000% confident about

your trades then you can do...other wise you loose hard earned money..

when you buy options after execution your full amount deduct on the spot

in the same way if sell options or write the options amount will be credited

immediately...no obligation like equity trade...

OPTIONS ARE SUITABLE FOR A FAST MIND WITH QUICK DECISIONS.

Before going to do Option trading you must have at least 2 years of equity trading

experience,