How to Do Options Trading in India?
What is Options Trading?
The clue really is in the name. Rather than buying and selling commodities, currency, shares etc on the day itself, buying an Option quite literally secures you the Option of buying or selling a commodity, currency, shares at a specific time in the future for a price which is set at the time the option is purchased.
Let us consider an example; On the 4th March 2024 you may be able to purchase an OPTION that will secure you the right to purchase a share in a company for Rs.145 (the ‘strike price’) until 8th April 2024 (the expiration date). The price to purchase the share outright today on 4th March 2024 may be Rs.146, so why not buy it outright today? Careful studying of the markets may give you reason to believe that the share value will have increased substantially by 8th April. Maybe you predict that the share price will have risen to Rs.510 in that time. When the time arrives, you will still have your option that you purchased on 4th March which allows you to buy the share for the agreed price of Rs.145, thereby making a saving for you.
The most useful part of buying options is the fact that they are by their very nature, optional. Going back to the same example, imagine that after 4th March, the share prices take a slide and by 8th April they are only valued at Rs. 141, you would not be forced to purchase the share at Rs.145. You can choose to, but it is optional. Realistically you would seriously consider whether or not you wanted to buy shares in this company at all. You are at liberty to decide not to make use of your option, buy the shares outright at the going rate on 8th April, or simply decline to buy at all.
Options to buy currency will state how much currency you can buy with how much of another currency, options to buy commodities will state how much quantity of a commodity you can purchase at what price. They are always time-bound, meaning that they have a date that is set in the future. When that date arrives the option can be acted upon, or not. If not then it will simply expire and cannot be brought back. If you allow an option to expire you will not be refunded the amount you actually purchased the option for, so that would be a loss. The example we have described here where the buyer of the option buys the right to buy something is called a “call option”.
In just the same way that we have seen in the first example, Options to sell also exist as the exact opposite. These kind of options where the buyer of the option buys the right to sell something are called “put options”. Let’s assume you were holding a share in a company that was currently valued at Rs.111, which you believe to be overpriced (as you anticipate it to be dropping in the future). You could buy an option to sell the share at Rs.111 with an expiration date set into the future. Once the expiration date arrives, the value of the share could have gone down, say to Rs.105, but you can exercise your right to sell it at the original agreed strike price of Rs.111.
If the value of the share should have unexpected risen though, you could choose not to exercise your right to sell, choose to keep your share, let the option expire, and live with the fact that you wasted money buying the option. In this way options can be seen as way of limiting loss, as you only ever really stand to lose the cost of purchasing the option itself.
How to do Options Trading in India
Now that you have learned the meaning of options trading, you may well be wondering how to do options trading in India. It is something that is available to everybody providing you have some funds to invest. However it would not be wise to jump straight into option trading without having learned some options trading strategies. This may not be the easiest form of trading for beginners. Even experienced traders should definitely speak to an expert in the field of options trading before deciding if they wish to try it themselves. There are any number of options trading brokers in India 2024. How do they differ, and which one is right for you? You are encouraged to speak to several and use the information they provide to help you make an informed decision as to whether you wish to engage in options trading and who you would like to use as your broker. A great starting point would be chat to the friendly and helpful staff at GOOD WILL INDIA who will be only too pleased to receive your call.
For all your options trading related questions, call GOOD WILL INDIA on +91 80122 78000.
WilliamNip
November 20, 2023http://edpills.monster/# best erectile dysfunction pills
JuliusBleam
November 20, 2023http://levitra.icu/# Generic Levitra 20mg
TimothyMes
November 20, 2023Levitra tablet price: Vardenafil buy online – Buy generic Levitra online
RichardCok
November 21, 2023non prescription ed pills [url=http://edpills.monster/#]medication for ed[/url] best non prescription ed pills
JosephTrile
November 21, 2023Cheap Levitra online: Buy generic Levitra online – Vardenafil price
JuliusBleam
November 21, 2023https://levitra.icu/# Levitra generic best price
TimothyMes
November 21, 2023tadalafil canadian pharmacy online: generic tadalafil daily – where to buy tadalafil in singapore
RichardCok
November 21, 2023cures for ed [url=https://edpills.monster/#]treatment of ed[/url] what is the best ed pill
JuliusBleam
November 22, 2023http://tadalafil.trade/# where to buy tadalafil 20mg
WilliamNip
November 22, 2023https://edpills.monster/# ed dysfunction treatment
RichardCok
November 22, 2023drugs for ed [url=https://edpills.monster/#]new ed pills[/url] ed treatment pills
TimothyMes
November 22, 2023п»їLevitra price: Buy Levitra 20mg online – Levitra online USA fast
JosephTrile
November 22, 2023buying ed pills online: what is the best ed pill – ed treatments
RichardCok
November 23, 2023male ed pills [url=http://edpills.monster/#]natural ed remedies[/url] ed pills that really work
JuliusBleam
November 23, 2023https://edpills.monster/# the best ed pill
Charleskag
November 23, 2023purchase doxycycline online uk [url=http://doxycycline.forum/#]Buy doxycycline for chlamydia[/url] average cost for doxycycline
Scottanelo
November 23, 2023lisinopril 20mg coupon: buy lisinopril online – lisinopril tab 100mg
VernonBor
November 24, 2023doxycycline 50 mg price australia: Buy Doxycycline for acne – cheap doxycycline online
Charleskag
November 24, 2023zestril price in india [url=http://lisinopril.auction/#]lisinopril 10 mg order online[/url] lisinopril buy without prescription
Jamesnal
November 24, 2023http://ciprofloxacin.men/# where to buy cipro online
Scottanelo
November 24, 2023doxycycline 300 mg price: Doxycycline 100mg buy online – order doxycycline 100mg
Charleskag
November 24, 2023where can i get zithromax over the counter [url=https://azithromycin.bar/#]buy zithromax canada[/url] buy zithromax online fast shipping
Scottanelo
November 24, 2023generic zithromax over the counter: zithromax z-pak – buy cheap generic zithromax
Jamesnal
November 24, 2023https://ciprofloxacin.men/# buy cipro without rx
VernonBor
November 25, 2023ciprofloxacin: Get cheapest Ciprofloxacin online – ciprofloxacin over the counter
Scottanelo
November 25, 2023cost of doxycycline 40 mg: buy doxycycline over the counter – can you buy doxycycline over the counter
Charleskag
November 25, 2023cipro 500mg best prices [url=http://ciprofloxacin.men/#]Get cheapest Ciprofloxacin online[/url] buy ciprofloxacin
Jamesnal
November 25, 2023http://azithromycin.bar/# zithromax tablets for sale
Scottanelo
November 26, 2023amoxicillin tablets in india: purchase amoxicillin online – azithromycin amoxicillin
Jamesnal
November 26, 2023https://lisinopril.auction/# best lisinopril brand
Charleskag
November 26, 2023where can i get zithromax [url=https://azithromycin.bar/#]zithromax antibiotic[/url] can i buy zithromax online
VernonBor
November 26, 2023generic zithromax 500mg: buy zithromax canada – zithromax for sale cheap
Jamesnal
November 26, 2023https://doxycycline.forum/# where can i buy doxycycline without prescription
Scottanelo
November 26, 2023buy cipro: Buy ciprofloxacin 500 mg online – buy cipro online canada
Charleskag
November 27, 2023amoxicillin 500 mg capsule [url=https://amoxicillin.best/#]buy amoxil[/url] amoxicillin generic
RichardIcold
November 27, 2023indian pharmacy: pharmacy website india – online pharmacy india
RobertGLUND
November 27, 2023canada prescriptions online: order medication online – global pharmacy plus canada
DanielIdowl
November 28, 2023canadian pharmaceutical companies that ship to usa [url=https://ordermedicationonline.pro/#]order medication online[/url] canadian trust pharmacy
RichardIcold
November 28, 2023superstore pharmacy online: buy medicine online – prescription prices comparison
Jamestek
November 28, 2023https://mexicopharmacy.store/# mexican online pharmacies prescription drugs
RobertGLUND
November 28, 2023pharmacies in mexico that ship to usa: mexican medicine – mexico pharmacies prescription drugs
RichardIcold
November 28, 2023canadian pharmacy phone number: international online pharmacy – best rated canadian pharmacy
Jamestek
November 28, 2023http://canadiandrugs.store/# canadian pharmacy online store
RobertGLUND
November 28, 2023cheapest pharmacy canada: northwest canadian pharmacy – onlinecanadianpharmacy
DanielIdowl
November 29, 2023non prescription drugs [url=http://buydrugsonline.top/#]online pharmacy usa[/url] online pharmacy no prescriptions
Michaelvam
November 29, 2023paxlovid pill: Paxlovid over the counter – paxlovid generic
Donaldliz
November 29, 2023http://claritin.icu/# can i buy ventolin over the counter australia
how to buy generic clomid no prescription [url=https://clomid.club/#]Buy Clomid Online Without Prescription[/url] can you get clomid online
MichaelTek
November 29, 2023http://wellbutrin.rest/# wellbutrin xl generic
Michaelvam
November 30, 2023brand neurontin 100 mg canada: generic gabapentin – medicine neurontin 300 mg
MichaelTek
November 30, 2023http://gabapentin.life/# neurontin 800 mg tablet
Michaelvam
November 30, 2023can you buy generic clomid pills: order clomid price – where buy generic clomid price
MathewDrypE
December 1, 2023paxlovid pill http://paxlovid.club/# paxlovid buy
MichaelTek
December 1, 2023https://wellbutrin.rest/# wellbutrin sr
Michaelvam
December 1, 2023cheap neurontin: buy gabapentin online – neurontin generic
MichaelTek
December 1, 2023http://paxlovid.club/# paxlovid india
Michaelvam
December 2, 2023where to buy generic clomid pills: order clomid without dr prescription – where to buy generic clomid
MichaelTek
December 2, 2023http://clomid.club/# where can i get cheap clomid
Michaelvam
December 2, 2023ventolin 70: ventolin price in india – buy ventolin no prescription