Future /option trades are very interesting as well as risky trade . No huge investment is needed to enter into the trade. With premium and margin money , the contract can be entered between the buyer and seller. Physical or cash settlement at the end of contract period. In call option , the buyer will get rights to buy without any obligation . If the contract is not executed because the market price is very low when compared to strike price , the buyer will lose only the premium amount.Hedging of risk is possible to trade in different shares by using Multiple call or put option.
, , Futures and Options, stock
Hi,
Your Question 1:: Could you please explain ” Lot size ” in Derivative?
A lot size is the standard number of units in the trading security. It is the number of shares one buy in a single transaction and the lot size of futures and options contracts is determined by the stock exchange from time to time. Expiry Date in the derivative market always ends on last Thursday of the contract month.