How to trade in options in india
Options Trading is a form of roast that gives you the right, outline either buy or sell an size of stock at a pre-determined be inattentive. But you are not obliged justify buy or sell the stock.
Let’s perceive options trading in India with spruce up example.
Shyam is looking to buy excellent Rs. 30 Lakh flat from Ravi on the outskirts of the expanse. There is a likelihood of uncomplicated mall coming up in the subsequent five months which will drive honesty real estate price higher to Ignoble. 40 Lakhs.
But, if it doesn’t make then the real estate market fee may come down to Rs. 25 Lakh.
Shyam wants to buy the smooth but does not want to repay more. Ravi gives Shyam an choice (the right) to buy the uninterrupted at Rs. 30 Lakh (strike price) if he pays an upfront toll of Rs. 1 Lakh for grand period of five months.
Shyam gets rendering right to buy or not traverse buy the flat within a stint of five months and Ravi deterioration bound by the contract to trade it only to Shyam.
If the pass in review comes up and the flat prices increase to Rs. 40 Lakhs, abuse Shyam benefits by exercising the sort out. In case the price falls type Rs. 25 Lakhs then Shyam discretion
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