Here are the 5 advantages of option buying over option selling: Limited Risk: When you buy an option, the maximum amount you can lose is the premium paid for the option. This means that the risk is limited, making it a safer trading strategy compared to option selling, where the potential losses can be unlimited….
Here are the 5 Key differences between stock options and index options in the Indian market: Underlying Asset The underlying asset of stock options is an individual stock, while index options are based on the performance of an underlying index, such as Nifty or Bank Nifty. Settlement Stock options in India are settled through compulsory…
It all started in the 1600s with the Dutch East India Company, which used private citizens to fund its voyages in exchange for a share of the profits. Roots of Stock market The stock market is a fascinating and complex system that has been around for centuries. It all started in the 1600s with the…
The reason why option buying is cheaper than selling is due to the difference in the risks and rewards associated with each strategy. In this post, we will evaluate the potential profit and risk for an Option Buyer Vs. Option Seller. When you buy an option, you are paying a premium to purchase the right,…
In this post, let us understand options trading in Indian markets in detail and answer some of the related general questions… How does option trading work in the Indian market? An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific…