What are futures and options?

Futures and options are stock derivatives that are traded in the share market and are a type of contract between two parties for trading a stock or index at a specific price or level at a future date. By specifying the price of the trade, these twin derivatives safeguard the investor against future fluctuations in the stock market.

How to trade futures and options in India?

Futures and Options contracts can be easily traded and transferred in the Stock Exchange market, their values being subject to the dynamic values of the commodities and securities market in India.

What are the different types of options trading?

There are two forms of options trading in the derivatives markets based on this premise: Call options and Put options. Call options are futures contracts that offer the buyer the right but not the obligation to purchase the actual stocks or index. Put options, on the other hand, allow you the right to sell something in the future.

How to trade options in January 2020?

For instance, during January 2020, one can trade in January Futures, February Futures and March Futures of a stock X. Trading in Options is complicated since you trade the premiums. So, there will be different strikes traded for the same stock for Call Options and for Put Options.