What is Option Trading?
What Is Options Trading?
Trading in options is leveraged without paying the full value of the shares. In option trading, stocks are divided into lot sizes and different companies or indices have different lot sizes. It depends on the option traders how they make profit for example if you are going to buy a TV and at that time a friend of yours gets a call and he says next week the price of electronic items will be reduced by 20% or 20% % the price will increase and the TV you want to buy will come next week due to not being in stock, then you book that TV for ₹ 100000 and pay 10000 in advance, which gives you the benefit if the price next week If you increase then you will get TV at the same price at which you booked TV last week and even if the price decreases, you will get TV at the same price at the price you had booked, it would be better if you take a loss of ₹ 10000 Take.
How To Do Options Trading.
To do options trading you need to have a demat account Demat account You can open your account on trusted platforms like Zerodha, Upstoke, Angel Broking etc. and start options trading.
Lot Size In Options Trading.
While trading in option trading, you get shares in lot, different company or index lot size is different like 1 lot size of Nifty is 50 shares and size of 1 lot of BankNifty is 25 shares. Is.
Options Trading Time Frame.
Shares have an expiry date in option trading, this date is for a week or a month etc. In this interval of time, you have to buy and sell shares, otherwise you may have to face a lot of loss and 5 or 15 minutes while doing option trading. Use the chart pattern of .
Why Is It Zero?
Option trading and the entire stock market have the same opening time but options trading have an expiry date and whenever the weekly or monthly expiry date is near, all the investors sell their shares, due to which the price of the shares is 0 – 0.5rs Expiry date is thursday in which 9:15 am from 3:30 p.m. Till then everyone has to sell his shares.
Step by step instructions to Make Profit In Options Trading.
To make profit in options trading, you need to keep the following things in mind.
• Option trading is for short term, so by doing technical analysis, definitely find out the mood of the market.
• Use the main index Moving Averages, Stochastic, RSI etc. when trading options.
• Use candle chart patterns when trading options.
• Use time frames of 5 minutes or 15 minutes when trading options.
Benefits Of Options Trading.
• In option trading, maximum money can be earned in a very short time.
• In option trading you will have limited loss but profit is unlimited.
Disadvantages Of Options Trading.
• You have to take a lot of risk in option trading.
• As soon as there is profit in options trading, there is a loss as well.
Should Options Trading Be Done.
Option trading is very risky and loss and profit are very quick in option trading but if an investor does option trading without knowing and without stop lose then his loss can be huge and if someone is from middle class family then he should One should stay away from options trading and if someone is financially strong and who has spare money, then he can do options trading.