Trading in stock options in india

Trading Stock Options Explained in India - Samco

 

trading in stock options in india

Despite a population of over billion, there exists only 20 million active trading accounts in India. Fortunately, as famous traders such as Sudarshan Sukhani and Rakesh Jhunjhunwala continue to make millions of Rupees each year, day trading in India is on the rise. Best Share Trading Platforms In India When it comes to success in Stock market, one of the important factors apart from your trading strategy is the platform you use for the transaction. It is especially true if you are a day trader, where your profits can turn into losses in a fraction of second if the trading . The Stock Exchange for trading stock options in India is the National Stock Exchange. Instrument type on the SAMCO online trading platforms – OPTSTK. While trading stock options in India, clients must select the instrument type OPTSTK on either of the SAMCO trading platforms.


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Option Writer: Seller of the Option. The person who goes short on the option. Option Buyer: Buyer of the option. The person who goes long on the option. Strike Price: Price of the underlying at which the option can be exercised. Premium: Upfront payment made by the option buyer to the option writer. Option price. Expiry Date: The date on or before which the option can be exercised.

Here is a real life example for to make things clear and will help you understand what is going on, in case you are confused. Suppose you want buy a cupboard on 28th December You have the following three choices : 1. You can go to the furniture shop on 28th December, trading in stock options in india, ask the price and pay for trading in stock options in india. This is same as the regular procedure for buying stocks in the market.

You must be familiar with it. Why would you do that? So, in a way you are hedging your risk. Why would the seller do that?

Here is the strike price at which the contract is entered. In a futures contract, you need to buy the stock at predetermined price. So now that you have understood how options work. To choose best broker for option trading in India, you need to consider the following points : Brokerage.

 

Best Broker For Options Trading In India

 

trading in stock options in india

 

Jul 11,  · Dalal Street Investment Journal (DSIJ) popular virtual stock trading platform in India which helps you to understand the different trading nuances and to test your investment strategies. On registration, you’ll get virtual cash of Rs 1,, to create your syvypazino.gq: Kritesh Abhishek. Best Share Trading Platforms In India When it comes to success in Stock market, one of the important factors apart from your trading strategy is the platform you use for the transaction. It is especially true if you are a day trader, where your profits can turn into losses in a fraction of second if the trading . The Stock Exchange for trading stock options in India is the National Stock Exchange. Instrument type on the SAMCO online trading platforms – OPTSTK. While trading stock options in India, clients must select the instrument type OPTSTK on either of the SAMCO trading platforms.