How Option Trading Works
Option trading involves two participants — the buyer and the seller (writer).
A buyer pays a premium to gain the right to trade.
A seller receives the premium but must fulfill the obligation if the buyer exercises the option.
For example, if you buy a Call Option for a stock at ₹100 with a premium of ₹5, and the stock rises to ₹120, you can buy it at ₹100 and make a profit (₹15 net after premium). If the stock stays below ₹100, you simply let the option expire, losing only the ₹5 premium.
Option trading involves two participants — the buyer and the seller (writer).
A buyer pays a premium to gain the right to trade.
A seller receives the premium but must fulfill the obligation if the buyer exercises the option.
For example, if you buy a Call Option for a stock at ₹100 with a premium of ₹5, and the stock rises to ₹120, you can buy it at ₹100 and make a profit (₹15 net after premium). If the stock stays below ₹100, you simply let the option expire, losing only the ₹5 premium.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.