Online trading in futures and options


Online trading in futures and options


This guide will provide a general overview of the futures market as well as descriptions of some of the instruments and techniques common to the market. A:The main fundamental difference between options and futures lies in the onlie they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract. The buyer of a futures option contract has the right (but not the obligation) to assume a particular futures position at a specified price (the strike price) any time before the option expires.

The futures option seller must assume the opposite futures position when the buyer exercises this right.If you are unfamiliar with futures, it is recommended that you online trading in futures and options more about trading futures contracts before continuing with ib rest of this article. Things To Note Grading Trading Futures Options Expiration DatesFutures opyions usually expire near the end of the month that precedes the delivery month of the underlying futures contract (i.e.

March option expires in February) and very often, fugures is on a Friday. Index based futures2. Index based options3. Individual stock options4. Currently exchanges are providing index options with a tenure upto 5 years at any given point of time.The National Stock Exchange and Bombay Stock Exchange have commenced trading in Derivatives Market with Index Futures being the first instrument.




Options futures trading and online in

Options futures trading and online in

Online trading in futures and options