Apart from cash market there are 2 more ways of trading, 1.Futures. 2. Options. Futures is like cash market and settlement of profit or loss happens on a daily basis. Here a trader can trade for a month and max 3 months with a single contract, he can go long or short on delivery.
Options are a buyer buys and option and pays premium to seller. The buyer looses the premium paid if stock does not achieve the strike price.
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