subject: Futures and options trading India has risk factor involved [print this page] Futures and options trading India has risk factor involved
F&O derivatives that is inclusive of Futures and options trading is the most common of all. Futures is an agreement of sorts between two individuals or parties to sell and purchase an asset of a standard quantity and quality on a particular date sometime in the future at a rate which the two parties fix and have a consensus with, in today's date. On the other hand, options gives a right to an individual but he is not bound to buy or sell some future contract at a fixed rate for a particular time period depending on that which has been decided beforehand.
Futures and options trading India is seen as a pathway by those who wish to quick money. This is one tool which will really benefit people is used smartly and wisely. One has to understand that even though it gives good returns, there is a high risk factor involved and it is highly possible for you to lose money and face losses since the market is highly volatile and not stable at all. The only thing that one can do to ensure success is that they need to study the market well. One has to understand the finer nuances of the market, the volatile nature of the same, investing the right amount and treading carefully.
The Futures and options trading India has a high risk factor involved too. Thus it is beneficial to invest the minimum amount always. Another very important factor is research. One has to do their homework well, research right so that you make no errors and even a novice can then earn good money.
