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Options Trading : Beneficial or Risky ?

posted by nita 9 days ago

People are turning towards share market very rapidly for last 5 years and try to make more money. People investing their money in the market for a while in the market don't know about the several fields, one of them is trading in 'options'.An option is a kind of security which can be bought or sold during a specific time which has a certain deadline. An option is a form of derivatives.

 

In options trading, you can trade either with a call option or put option. In call option you have to buy a lot with a strike price, if the cash market grows, the premium value would increase and you'll earn a profit. If you the cash market falls, the premium value would decrease and you'll suffer a loss. You can trade intraday also, and intraday tips are specialized for intraday trade.

In put option, you just go reverse of the call. You purchase a lot with a fixed strike price. If the premium value is decreased then you'd be able to gain the profit.

 

Trading in options sounds very beneficial, however, there are still some factors which might result in a loss. To overcome the fear of loss, investors should opt for Option tips.


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