Futures and option are various ways of trading in the market. We see buy option and put option depending on the study of demand and supply. Furthermore we see different contracts that are available where in the Right and obligation of buyer and seller changes and also the future date and future price .
In Future- There is the obligation of the buyer to buy at a particular specific date. In Options there is the right but no obligation to buy (sell) at a particular price but the seller has the obligation to sell.
We also see difference btw call option: BUY, Put option: Sell
and also cash settlement and physical settlements.
, , Futures and Options, Call option, put option/ Future and option Contracts/ settlement: cash and physical/
Hi,
This will be the appropriate answer for the questions
Strike Price?
Strike Price- The price at which the contract is signed.
Is it possible to trade NIFTY? Explain How?:
NIFTY can be traded only in Derivative Instruments i.e. Futures & Options and it can’t be traded in spot/cash market.
Strike Price?
Strike Price- The price at which the contract can be exercised