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Future And Option

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By Author: Vinita
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Future and Option market trading started way back in the 19th Century, and official trading in this market begin since 1848 the time when the Chicago Board of trade was established. Trading in Future and Option is considered to be bit risky, as the concept is having a sort of misconception in the mind of the traders. The thinking which prevails in the mind of the traders is due to the lack of insight in the market, and because of the insufficient data they suffer losses in all of their trading strategies.

Allotting the right to buy or sell something in future is the main gist of the Option market.
When one gets a call option in Dow index future options, he's buying the right to purchase that Dow future at a particular price (called 'strike price') and time (called 'expiration date') in the future.

Trading in Futures and Option can be explained by the following points which could be helpful for the traders

1) When a trader gets a put, he sells the market since a call buys the market, and

2) When a trader sells a put, he buys the market since a call sells the market.

A 'premium' is paid ...
... by traders so they can buy an option on this future. The option is rendered worthless on expiration date if the futures and options market doesn't make the option's strike price. The future will be given to the trader at the specific strike price if the futures and options markets do not reach the option's strike price on the expiration date. Due to the increase in the liquidity in options traders were taking a setback in this field for trading. But a revolution sort of was created when in 1977 Options puts was initiated in Chicago Board of Trade and later on NYSE and NASDAQ began to be traded in equity option contracts, and due to all these the trading in Future and Options gained a great deal of popularity and it was only because of High Liquidity and Great Leverage. Today there is a great deal of traders who are successfully trading in Future and Option market.

Future and Option market is concerned one of the advisory is having their premium services in this market which is known for the accuracy in Future calls is known as CapitalHeight Financial Services. The calls given by them in Future section are having an accuracy rate of more than 85-90% and daily more than 4-5 calls are given with the first target yielding upto 1500/- and second upto 1800-2000 and the third target yielding about 2500-3000/- rupees with a fixed stoploss of about 2500/- . On the other hand if we talk about the Option calls they are two categories in which they are given Nifty Option and Stock Option.

15-16 calls are given in a month in this section with an accuracy rate of above 90%So if you are still having any misconceptions about Futures and Option trading do join with the company and earn profit for sure.

Vinita Tilwani
MSC.(CS),M.Phil(CS)
Interested in share market and online trading.
http://www.capitalheight.com
http://capitalheight.wordpress.com

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