Future and Options can be used to withstand short position for a while. It need not require the entire money to buy stocks but requires only premium to make profits. On the other hand, premium will turn to zero on the expiry date but in equity markets, the trader will hold the shares. Buyer of options hold the rights to buy or sell (call or put) by paying premium to the sellers, whereas sellers only have the obligation.

1 Comment
  1. vignesh 6 years ago

    Hi sir,
    Your work is good and appropriate.

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