Explain to me about Options trading

Hi all,

I am doing trading in equties from past 3 months and day by day i am getting losses . I heared that in options the risk percentage is less when compare to equities. But i dont know anything about options. Can anyone expalin me about options if possible with an example.

Thanking you,
Phani.

Re: Explain me about Options trading

Dear Phani,
I believe you are doing intraday trading.Being a new trader avoid intraday trading. I have burnt my fingers like you being an intraday trader. Options trading is for the people who know the in's and out's of the market.
I suggest you go for the option of taking shares in delivery mode and sell it whenever the market is up.

Happy trading !!!!
Sadanand

Re: Explain me about Options trading

hi ,
three months is a very short period in this vast stock market especially with the current trend.F and O is for experienced traders,who have seen many ups and downs......better stay with equities till u gain more experience.you need more strong mind, money and experience to trade F and O.in equities we can rise after every fall if we have patience but not in F and O . YOU WILL BE WIPED OUT

Re: Explain me about Options trading

I good advice to u phani:
Buy when markets are down, and sell when markets are going up, not the other way, else you will lose

The risk percentage is not less in option. A long option protects you from huge adverse moves only. Otherwise, the risk percentage is higher due to high leverage.

Regards,
--Ashish

Please go to the beginners section and read the first post titles" Beginners Step by Step trading lessons with video" it has an options trading guide.

Hi

i think you may learnt about options now...
Regards

Kumar