Career Search

Monday, October 15, 2018

What is Option Trading?

Options are a type of derivative security as their price is essentially linked to the price of the underlying asset.

The buyer of an option has the right to receive delivery or payment of an underlying on a specific date, at a specific price, on a future date. He is however not under obligation to exercise the option.

The seller of an option is obliged to make delivery or payment of an underlying on a specific date, at a specific price, on a future date if the buyer exercises the option.

Since the buyer may or may not exercise the option, the seller collects a small upfront payment, called the option premium, when he sells the option.

The right to buy is called a call option and the right to sell is a put option.




SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

No comments: