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What Is Stock Futures And Options. Stock market offers several products for investment and trading purposes. Futures and options are two major financial instruments traded in the derivatives market. But in the future and option segment the participants can buy and sell contracts which have a. What are Futures and Options.
Apart from being a hedge against price fluctuations they can be traded on exchanges such as commodities stocks and currency. Few of them are mutual funds equity IPO NCDs bonds derivatives etc. Options are of two types – call and put. A Call Option is a right to buy while a Put Option is a right to sell. A call option gives a buyer the right to purchase an underlying stock or index at a preset price during a contracts liquid life – a month or also week in case of Bank Nifty. What are Futures and Options.
Trading in Futures and Options in Share Market.
Click here if you want to know how to buy and sell Futures Contracts. An options contract allows an investor to sell or buy an asset such as stock. However there are some key differences between futures and options. The key difference between futures and stock options is the change in underlying value represented by changes in the stock option price. Futures are obligatory contracts that bind the trader to buy or sell an underlying stock or index at a future date on a pre-set price. These are contracts signed by two parties for trading a stock asset at a predetermined price on a later date.