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Future & Options

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Futures’ trading is the form of trading by which the trader speculates on the future value of a stock, commodity or currency. The individual traders do not have to own or invest for futures trading. The trader will deposit the capital money based on the speculation. He can be a buyer or seller based on how he predicts the future value of a stock or commodity. By entering in to a futures contract, the trader agrees to buy or sell a share on the settlement date. A lot of opportunities are there in futures trading. Options give the trader the choice to buy or sell the stock on the settlement date. Call option and put option gives the share holder the right to buy and sell the shares. An option trading is a risky affair and only experienced investors can handle it profitably.

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