An Insight on the “Options Segment” of Indian Stock Market

Trading in Indian Stock Market is definitely a lucrative way to earn handsome income. The key to success in the stock market venture is to have a profitable strategy. The strategies with high Reward-Risk ratios are considered best for trading in the equity market. The Indian Stock Market is definitely a place, from where huge wealth can be accumulated, provided you follow the rules and stick to basics. If you are new, you can take help of the advisory firms, who render accurate Stock option Tips and Sure-shot Option Tips for profitable trades.

Stock Option Trading
Stock Option Trading

There are three main segments of the Indian stock market, in which a retail trader can choose to trade. These segments are the Cash Segment, Futures Segment and Options Segment. If you want to trade in Nifty Options, you can take help of the experts rendering nse stock option tips. Here, we will have a look at the key details pertaining to these segments.

 In the Cash segment, all the transactions are dealt with cash. That is the stocks can be purchased with available Cash and that too at current strike prices of the Stocks. In the Futures Segment, the Future contracts can be purchased pertaining to a future date expiry. This means that the prices in consideration are future prices on a future date. Usually “Lots” or collection of shares are bought and sold in this case. The third segment of the Indian Stock Market is “Options” Segment.

In the case of Options Segment, the trader gets the right to buy and sell the stocks at a particular strike price. Usually, the “CALLS” and “PUTS” of the Options are bought by the traders. If the trader is anticipating that there can be a rise in the price of the stock, he should go for a “CALL” option to benefit from the price movement. Similarly, if there is an anticipation that the price of the Stock will go down, the trader should look for buying the “PUT” option of the stock. This will make trader end-up in profits based on the price movement. Here it should be made clear that the options offer the right to buy and sell and not the obligations for the same.

The traders can have a profitable venture in the options Segment if they follow a strategy with a good reward-risk ratio as well as by adherence to the rules of Risk management and Wealth management. Strategies like “Strangle Strategy” are specifically designed to be applied in the Options Segment. However, proper research must be done before the application of such strategies. Some of the Options strategies are suitable for trending markets while others are favourable for Side-ways market. Traders should conduct a detailed “technical analysis” before investing real money in the trades.

In-Depth research must be conducted before starting investing in the “Options Segment” of Indian Stock market. The new and aspiring traders can take the help of advisory firms like “Profit Aim Research” to get accurate Stock Option Tips and Intraday Options Tips.

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