I Have Few Queries About F&O

yes, it works like that and opposite too. you could lose ALL yr money in one day

Then why not buy lottery ticket then. Risk limited and returns are lot more then 100%.

Minterest, it might work once in a while on few trades.. but doesn't work like this over long period of time on every trades..
Hence risk management, survival of account, etc are lot more important.
You are right, option has limited risk, but if one is not careful in trading then one might end up hitting the risk more often then the profits.

In my experience, trading is not quick and easy route to rich. Though it is highly addictive and dangerous to financial health, if not practiced correctly.

All the best and Happy Trading.

Huge investor build-up in Nifty 2200 put on 16 Feb 2009,

Last week, Nifty March 2200 put option saw a significant build-up in positions, which analysts term as abnormal, because the underlying Nifty index was as far as 2900-levels. The argument is that only an informed investor can take such a bet, in such an uncertain market.

Theoretically, if an investor buys Nifty 2200 put when the index is at 2900, it would mean that he is expecting the index to fall to around 2200. So, if the index is not headed southward, he would lose money. But real-time trading strategies are not as simple as this, which is the reason why many market participants are flummoxed.

"The build-up is huge by any standards and it is surprising because the strike is so far-out-of-the money," said a derivatives strategist with an institutional broking house. While there are a few versions about the reason behind the significant open interest creation in Nifty March 2200 put floating around, the more common one is that it was a US bank, considered as a leading player in Indias derivatives, which initiated activity in this contract with huge purchases.

Hi, i also hav account with HDFC, and yes F&O has high volatility.

u an get high profit or high loss.
thats y they r calld as risky.