Options Trading in India (Basics/Strategies/Terms)
Options trading definition is simple which is defined as a trading instrument that give you the right to buy or sell a specific security on a specific date at a specific price. When you buy an option through options trading app, you have the right to trade the underlying asset but you're not obligated to. If you decide to do so, that's called exercising the option and you can also set options trading alerts for options trading algorithm.
Options are the financial instruments that are derivatives and are based on the value of underlying securities such as stocks. An Options contract allows the investor to either buy or sell the underlying instruments such as security, ETF or the index at the predetermined price.
The buying and selling options can be done only on the Options market. The buying an option allows the investor to buy shares at later time called as “call option”, on the other hand buying an option that allows to shares at later time is termed as “Put Option”. The Options and stocks are not same as it do not represent the ownership of a company. The Options are considered as the lower risk as an investor can withdraw an options contract at any point of time.
Options Trading Guide : - Option Trading Guide at a Glance :
- Option broker reviews to find the best broker for options trading in India.
- Options trading platform reviews
- 50+ popular options trading strategies.
- Compare option Trading Strategy.
- Articles about options trading.
- Understand options trading terminology.