Do you wonder why some traders consistently outperform the market while others struggle? Sharekhan's latest report dives deep into attitudes and behaviors of newcomers to shed light on these contrasting realities.
Bringing you Serious About The Markets (SATM), a comprehensive report that explores motivations, expectations and the approach taken by newcomers to navigating the Futures & Options segment.
| Futures | Options | |
|---|---|---|
| Obligation vs. Right | Obligation to buy/sell at a future date. | Premium payment only |
| Nature of Contract | Binding contract fulfilled at expiration. | Right to buy (call) or sell (put) at a set price by a deadline. |
| Price Determination | Based on market price, adjusted for factors. | Choice to exercise based on market conditions. |
| Risk Exposure | Unlimited risk | Premium price based on market, volatility, etc. |
| Profit Potential | Unlimited with market movement | Limited to premium paid |
| Liquidity | Generally more liquid | Limited, dependent on market and premium |
| Margin Requirements | Initial and maintenance margin | Can have lower liquidity |
Note: The information can be presented in the form of a table or an infographic to improve its visual representation.
Understanding the thinking of newcomers in Futures & Options (F&O) trading is what Sharekhan's "Serious About the Markets" report is all about. One of the objectives was to leverage the insights from this survey to help newbie customers at Sharekhan with strategies to navigate the high-risk F&O segment. Whether you are new to investing or an experienced pro, Sharekhan offers a range of approaches to protect your investments, boost your returns, and diversify your portfolio. Sharekhan believes that in order to consistently make money via the stock market a serious approach is required. This involves focusing on serious research, doing serious risk analysis and operating with serious discipline. Our full service model, our 24+ years of experience and our research team’s expertise all together can help you in adhering to this serious approach and therefore we say we are “Designed for the serious” If you're ready to take your trading & investing journey to the next level, we invite you to explore the world of F&O trading with Sharekhan.
Options trading involves buying or selling contracts granting the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe. This allows for various F&O trading strategies depending on your market outlook.
For instance, buying a put option on a stock allows the holder to sell the stock at a set price, even if the stock price falls. This can be used to hedge existing holdings or to speculate on a potential price decline.
One of the safest options strategies for beginners is a covered call strategy. This involves owning the underlying asset (like a stock) and selling call options against it. This strategy can generate income while limiting potential downside risk.
Options trading can be complex, but with proper education and risk management, beginners can gradually incorporate them into their F&O trading strategies. It's crucial to understand the types of options available and the associated F&O trading risks before diving in.
Futures trading involves buying or selling contracts to buy or sell a commodity or financial instrument at a predetermined price on a future date. This allows you to lock in a price and potentially benefit from trading futures regardless of future market fluctuations.
For instance, imagine a farmer entering a futures contract to sell a certain amount of wheat at a set price before the harvest. This F&O trading strategy protects the farmer from a potential price drop by locking in a selling price.
Buying and selling contracts for the delivery of assets at fixed prices in the future is known as futures and options (F&O) trading. While options trading gives the right, but not the responsibility, to buy or sell assets within a given timeframe, futures trading involves parties agreeing to buy or sell assets on a future date. Leverage, instruments for managing risk, and chances for speculation and portfolio diversification are all provided by F&O trading. Under the guidance of regulatory bodies such as SEBI, investors are offered a flexible and agile platform for proficiently navigating the financial markets.
We at Sharekhan are well-versed in the possibility of trading Futures and Options, or F&O. With over two decades of experience in this market, we have developed a comprehensive suite of F&O products that are designed to help you in your trading journey. Our products meet a range of financial objectives, regardless of whether you are an intraday or swing trader. We offer a holistic support system in addition to our products to make sure you get started quickly and right in the fast-paced world of F&O trading.
