Options And Futures Trading In India

It is an innovative way of trading and the share market regularly deals in these. They have an enormous impact on the India stock market. Hence it is very important to fully understand the basics of futures and options. So how do you define futures and options and what’s the essential difference between them? An option basically is a contract. This contract acts as a right to the buyer or the owner to buy or sell some quantity of assets on or before a specific date at a certain price. Here an important point to remember is that this contract works as a right and not as an obligation. The assets which are mentioned here may be either of the following -wheat, cotton, oil, gold etc as commodities and equity stocks and bonds as financial instruments.

It recognizes a difference between right and obligation. The main difference between a future and an option is very thin and needs to be understood. In a ‘future ” the buyer doesn’t have the option to buy an asset or not, he necessarily has to buy it. But when it comes to ‘options ”, as the name suggests, the buyer has an option to buy it at a later date. If this is clear, one can understand what differentiates futures and options.

The Union Budget for 2013-14, which will be presented by finance minister P. Chidambaram on February 28, is likely to lay special emphasis on investment to rev up the slowing economy, and is expected to contain a variety of sops to boost the capital markets and the infrastructure sector. According to reliable sources, Chidambaram may go in for a reduction in the securities transaction tax (STT) – imposed on the buying and selling of shares in the stock market – and …


It also deals with futures and options derivatives. In it there are two important parties namely-buyer and seller. The buyer and seller agree upon a contract wherein it is said that the contract will be finalized in a future date. Hence it is called ‘Futures”. Now when a buyer and seller enter into a futures contract they do so under the knowledge that the particular or specified transaction will have to be completed on the date of maturity.

Options and futures trading in india

Futures and options trading India is preferred by many people today. It needs to be understood wholly if one wants to trade.

Futures and options trading India prevents us from risk of investment. This is because the market is made on past date at a specified price. So if the price of a property changes due to fluctuation in the market, this contract won’t register the change, as it is already bound.

The company existed for almost 200 years from its founding in 1602, when the States-General of the Netherlands granted it a 21-year monopoly over Dutch operations in Asia until its demise in 1796. During those two centuries, the VOC sent almost a million people to Asia, more than the rest of Europe combined. It commanded almost 5000 ships and enjoyed huge profits from its spice trade. The VOC was larger than some countries. In part, because of the VOC, Amsterdam was …