Futures & Options are contracts, signed by two parties for trading in the stock market. They are known as derivative products, that derive their values from the underlying assets. Usually, Future & Option is one wonderful financial instrument, which is used to hedge the underlying asset & minimize losses. Options offer a multitude of directional strategies. There is no guarantee that the strategy you applied will give 100% result. But, if you are right about the direction & timing; you can make huge profit. If you don’t use proper options strategy or don’t follow proper risk management; options trading will be more risky. Profit can be made in any type of market, up, down & sideways. Future & Option contracts are traded in lot size. Options loose value over time and termed as wasting element. Options trading can create wealth or wipe out your capital. If you don’t use proper options strategy or don’t follow proper risk management; options trading will be more risky.
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