Futures and Options (F&O)
These are the contracts signed by two parties in the share market.
Futures
A future is a right to obligation of buy or sell an underlying stock at a predetermined price and deliverable at predetermined time.
Options
Options are right without an obligation to buy or sell equity.
Options is done in two ways:
These are the contracts signed by two parties in the share market.
Futures
A future is a right to obligation of buy or sell an underlying stock at a predetermined price and deliverable at predetermined time.
Options
Options are right without an obligation to buy or sell equity.
Options is done in two ways:
- Call option
- Put option
A Call option means right to buy. It is an contract that gives the buyer right to buy the underlying assets at strike price at any time up to the expiration date.
A Put option means right to sell. It is an contract that gives the buyer the right to sell underlying assets at strike price at any time up to the expiration date.
Now, I want to tell what is Strike Price:
A Strike price means where the derivative contracts can be bought or sold. For example, In call options the strike price means where the security can be purchased by option holder.
And In put options the strike price is the price in which security can be sold.
Happy Investing & Happy Trading
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