What is future and option in indian share market


April 13, at 1: No, all derivative contracts are routed via the exchanges. Well, think about it. Do I have to pay mark-to-market margin? This versatility is not there in futures.

August 25, at 8: Hence there are no negative surprises for him. November 11, at December 12, at 3:

There are of two types contracts: However if you were to compare the liquidity in Indian stock options with the international markets, we still have a long way to catch up. April 19, at

Now finally he gets to keep 6 lacs with him. The badla system no longer exists, it has become obsolete. Assume a stock is trading at Rs. So withyou can initiate the position.

In fact the margin to buy 1 lot Tata steel is approximately 20K, add to this PE, you get about Rs. Now can i square-off my position at this stage or do i have to wait mandatory till the contract expire. March 18, at 3: The best way to learn this is by experiencing it once. Clearly it does not make sense to buy a piece of land at Rs.

One way to look at liquidity is by looking at the bid ask spread and impact cost. Hence the Interest cost opportunity cost should also be factored. You can sell the option if you choose on the very next day and take home the profit i.

Sir, in order to escape significant time decay, I wish to buy options whose expiry is 45 to 60 days away. March 23, at 1: Is it easy to sell this huge qty on expiry day?

Check this — https: What do you think Ajay will do? March 31, at 4: I have been following the lessons for months now and heartfully thank you for them.

March 9, at Increase in volatility increases option premiums and vice versa. Hi, Superb Explanation Karthik…Really it is great help full to beginners like me…Thank you very much for making educated us about all these things…. January 17, at 9: