Futures and Options - Help required

#1
can anyone pls tell what is futures and options..how it works ..how to trade in that..I trade in only BSE Equity and nothing else..I am planning to start trading in commodity now... But I would like to know how to trade in futures and Options.I do not know anything about that nor I know anyone who knows about that.. Pls Help
 
#2
CALS - penny stock

Do you think its worth an investment in cals refineries.. Its at .30 paise now...do you think it ll shoot up in the very long run..say 5-8 yrs???
 

onlinegtrash

Well-Known Member
#4
you can use youtube and google to learn the basics
and try paper trading (i.e simulated trading) hands on..

and jump into the real trade soon.

spoon feeding is boring, and people will be more willing to help someone who has done his home work rather than
who just asks for spoon feeding.

anyways here is very rough & incomplete overview:

options and futures are basically contracts you enter into with some one else.
you pay certain price for these contracts called 'premium'.
you can buy/sell these contracts just like shares.
These contracts give rights to buy/sell certain number of stocks at certain expiry date (or before expiry date) at a certain price called strike price.


Usually if the share price is expected to go up, people will buy call options
if is expected to go down people will buy put options.

try to understand following keywords after researching from google:
call option
put option
expiry date
exercise
premium price
(american/european style options) etc.

in advanced level:
you can try various strategies, spreads etc etc.
you can hedge your risks effectively with F&O strategies.

ask the brokerage firm to give you an intro on this topic,
icici has some program going on for this.

Note: you may lose lot of money if you don't know what you are doing.
 
Last edited:
#5
Hi,

just read all the threads (as much as possible) under the "derivatives" category "option" sub-forum of this forum. Read threads by - aw10, linkono7, savantgarde, danpickup, akghosh - it should not take u more than 15 days to read & understand. What to do next - you'll find yourself.

Option trading is the most complicated yet the safest way to make money in the stock market. Hence it's going to take some time to get a good grip, do not rush, it will take u down, endlessly down.

Regards
 

rkkarnani

Well-Known Member
#6
can anyone pls tell what is futures and options..how it works ..how to trade in that..I trade in only BSE Equity and nothing else..I am planning to start trading in commodity now... But I would like to know how to trade in futures and Options.I do not know anything about that nor I know anyone who knows about that.. Pls Help
Have a look at this Word document... should do u good :

http://rapidshare.com/files/413506381/StepByStepLearning.rar.html
 

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