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Knowledge of Futures and Options

Future contract is an agreement which should be executed in future between the buyers and sellers at the agreed price.

Option: Only the buyers of option gets the rights and do not have any obligation. The seller of option do not have rights and gets premium for the signing the contract.
Call option buyer gets profit, if the stock goes above the strike price. Put option buyer gets profit , if the stock goes bellow the strike price. Premium is decided by buyers and sellers.

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