feel free to call us +919500077790 info@eqsis.com
Tagged: Need of Derivatives
Trader need minimum investment to book profit in call or put option.
Trader can transfer the ownership of call and put options.
If a trader is sure of the price rise or fall then he can utilize the future contract agreement option.
Need Future/call/put :
A stock trader signs an contract now and the settlement happens later, this is the basic process of future market. this is needed to safe guard the buyer or the sellers in an particular way. They will agree to sign the contract in an particular criteria where in the future it will benefit the buyer or the seller.
In Derivative market the money will be realized in a day to day basis even if the stocks are not. but in equity market, the money will only be realized only after the stocks are sold.
Call option: The buyer of the call option will always gets rights to buy, and the seller gives the rights to the buyers
Put option: the buyer of the put option the buyer will always gets the rights to sell
When trader expects the stock price to go down wards /up wards in near future
Less capital is required when compared to spot market
In this option, only minimum investment is required.
Both buyer and seller can make profit in this.
The future of trader is minimum investment maximum return.
Call is buyer and seller equal rights in contract.
Put is only right for buyer.
EQSIS, A Stock Market Research Firm
Knowledge is Power. Here you may start from basics, get support while practicing and evolve as active analyst, later you can become a pro