I am eager to know about functioning of Indian share market but I have none to answer my query.
Thanks in advance.
2007-04-23 21:40:42 · 3 answers · asked by alwaysfresh 1 in Business & Finance ➔ Investing
Options are basically used to hedge your positions in share market. But nowadays people are looking at options as " limited risk and unlimited profits" way, but it may not turn out like this.
There are two types of options : Call and Put.
When you purchase "calls", you are bullish and you think the price of the share for which you are buying the option will go up. If it goes up indeed, you stand to profit a lot.
On the contraty, "puts" allow you to be bearish and you will earn money if the prices fall.
You need to pay some fixed amount upfront when you purchase any of the options. It is called as premium. Your risk is limited to the amout of premium you pay--nothing more.
Options are not available for all the scrips listed on the stock market. The scrips fulfilling criterias will only be listed for "futures and options". You can find a list of all the scrips for which "futures and options" are available for trading. For getting the info, you can log on to www.nseindia.com.
One hint : never sell "options" under any circumstances. It is a position of limited profit and unlimited losses, if the trade goes against your position.
Read more and learn more, then enter into the market.
Best luck.
2007-04-23 22:04:29 · answer #1 · answered by Nitin G 7 · 0⤊ 0⤋
First download a file about 299 kb from Bse india. Then your doubts will be clear.. Please note in options trading 90% will be loosers 10% will be gainers. For buyers of call option: the loss will be the premim paid. Profit will be maximum. For sellers profit will be the premium received loss may be maximum. Like wise Put option: for buyers loss will the premim paid profit will be maximum. For sellers of put option profit will be the premum received and in case of loss if market is crashed then maximum loss. http://www.bseindia.com/downloads/about/Workbook.zip
2007-04-24 06:18:48 · answer #2 · answered by Nathan 2 · 0⤊ 0⤋
First get a demat account with some economic enterprise or enterprise like ICICI, Kotak, IndiaBulls, ShareKhan etc. those adult men cope with investor guidance and furnish investment tips too.
2016-12-26 21:34:58 · answer #3 · answered by gunger 3 · 1⤊ 0⤋