What is Options Trading?

What you want from trading is the main thinking that you should know before taking any investment. The option derivatives are the special kind of stocks. We can understand by this example: When you make a plan to purchase a property, then you have to submit deposit money for the property, it is some part of the calculated amount of the price of the property. This process is the same as the process of the purchasing stock option. The options contract is the special contract that provides the right of purchasing stock on definite value with before the definite time. Some of the traders feel it is a good investment process. Every trader should know about Share Market Basics.

In options trading, you can trade and make profits on the stock price without giving the whole amount of the stocks. It provides sufficient control on stocks on the minimum amount as compare to stock price. The option is very naturally risky investment process, it is right to do of experienced investors, they are always ready to market ups or downs, option uses for making profits and decreases loss.

There are two kinds of options

1. Call Option
2. Put Option

In contrast, put options provide the right to sell the underlying shares to the holder at the strike price on or before the expiration date. The value of the put option increases when the value of the underlying means is low. The put option is one where a person can ensure a stock for later fall. If your stock price is low, then you can take your put option and sell it at a set price level earlier. If the stock price goes up, then you are simply the loss of the premium amount paid. Before investing in the stock market, you should Learn Stock Market.

Case 1:

Rajesh buys 1 lot of Infosys Technologies May 3000 Put and gives 250 premia, this contract allows Rajesh to buy 100 shares of 3000 rupees from the current date till the end of May. To avail this, Rajesh has to pay a premium of Rs. 25000 only (250 rupees for a stock of 100 shares).

Buyer has bought the right to sell. Put's owner has the right to sell.

Case 2:

If you think that a particular stock such as "Ray Technologies" has a higher value in the month of February, and values in the future may improve. However, you do not want to take any risk in the price increase. Then you will have to take a put option on the best option stock.

Let's say the prices for the stock are under:

Spot Rs 1040

May Put on 1050 rupees 10

May Put on 1070 rupees 30

Important Of Technical Analysis

Looking at the benefits of SHARE MARKET, it is quite appropriate to attract our side with Share Market Basics,

Because everybody wants to earn a maximum profit by investing their savings money, but IGNORE cannot be done at all that SHARE MARKET is full of risks,

The biggest truth of the stock market is that - everybody here only enters to earn profit from the stock market, but only 10% people make money right from the stock market, and the rest 90% LOSS would be the people are,

And here 90% of the people are LOSS because they do not know that -

When bought shares,

In which price of shares

How much buyers buy

When to sell shares

In which price did the shares be sold

How much are the shares sold

And how to control your LOSS

To find out all these information, we need to understand Technical Analysis,

Stock Market RISK and RISK Pay Control

However, there are only two things in the entire stock market, buy  and sell the shares, this is the most fun part now, and the second truth in this market and the greatest unique thing is that nobody recognizes accurately whether anyone When to buy shares, and when to sell, this is also a risk part, so you should Learn Stock Market smartly

The risk in the market is of the fact that, nobody knows exactly when a buyer bought, how much to buy at a price, and when to sell and sold at many prices,

The whole risk is this,

Because no one here can always be 100% correct, and there is no one way that we can say that we have educated in stock market.

Measures to control the stock market risk -

We have seen that there are two lower stock markets - buying shares and selling shares,

The most important points are

Buying Share – When will the Shares Buy? How much to buy? How much did the stock buy?

Selling Stocks - When to Sell Stocks? How much did the stock sell in? How much did the stock sell?

At the same time, in the case of LOSS, how to protect the capital?

By keeping information about it and implementing it, risks in the stock market can be controlled, and with the help of protecting your capital, it can be expected to earn the right amount,

As we have already explored, no human can always say exactly how to buy a stock, how much to buy, how much to sell, and when and how much to sell,

But there are some measures by which we, about this, about the shares, when we should sell, at what price, and how much of the shares should be sold, we have a well POINT OF OBSERVATION about this, By controlling risks, lowering LOSS, profit can be increased,

And the names of these measures are - FUNDAMENTAL ANALYSIS AND TECHNICAL ANALYSIS

Let's talk now -

About TECHNICAL ANALYSIS

When we analyze at the company’s stock only on the basis of when its price rises and when it is concentrated, and it is not highlighted that the aptitude of the company to create its profit is so solid, i.e. When the earlier performance of the stock is kept in mind only then, we buy or sell BUYING or SELLING on the basis of TECHNICAL ANALYSIS,

And in this way, we can say that, on the basis of FUNDAMENTAL ANALYSIS and TECHNICAL ANALYSIS, you can well tell an estimate of the FUTURE PERFORMANCE of a stock,

In this context TECHNICAL ANALYSIS tells us about the cost of buying shares, the time of purchase, how much to buy and when, how much to sell, how many sales, stop loss, etc.,

And that's why a large INVESTOR also explains the changes and shares deals in the market with the help of FUNDAMENTAL ANALYSIS and TECHNICAL ANALYSIS that when should buy and sell so that we can earn more profits,

What is the stop loss?

Stop loss is the opinion or value at which the stock traders sell their stocks and evades the subsequent losses. In other words, the stop loss of a stock is the price after which there is no loss to you and at which point you decide the extent of possible losses in relation to a stock, which reduces your loss.

How does work

Not only at the time of decline, but it also are works even when stock prices increasing. For example, tell your broker about the same stock you bought at a price of 100 rupees, that if the stock reaches Rs 115, then it will be sold.

Why is it used?

Stop loss is used so that the damage in heavy upheaval can be avoided. Stock market emotions are strongly affected. In such a way, the more benefits it may have, the more damage can occur. Stop loss is the way to reduce this loss. Also, one advantage of this is that if you are not trading regularly and do not routinely monitor it, it can also be beneficial for you. In such a situation, Stop Loss can save you from many dangers.

It is important for you

Stop loss is very important for a short period, but if someone has to invest for a longer period then there is no significant importance for it. You should be prepared for yourself that there can be a big change in the market at any time.