What is Option Trading ?

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Today we will get all the information about option trading in share market, what is option trading in share market, how to do option trading and what is it, after which you will find it easy to trade.

Option Trading In Hindi- Before investing in the market, after knowing all the information, we make some strategy that in which type of stock we will invest and in which price we will invest, this is also part of the stock market, part of this strategy There is also option trending, today in this article we will know what is option trading and how it works.

What is options trading?

What is Option Trading – To understand option trading, it is necessary to know very deeply. Option trading is not a model like investing in a simple stock. Option trading has a different type of model, it is a little technical model after understanding everything. You can start trading in it.

What is Option – Option means you have the option to choose, you can choose any thing, you can invest money in it, either in bullish or bearish option trading, in the market you are falling on the price. You can also invest money.

If you understand option trading in a simple way, then it means that you have the option to choose like if the price of a stock is moving 100 rupees and in option trading you have the option that you will invest money on its rising price or falling price. But will spend money.

The concept of option can be understood with this example. For example, when you plan to buy some asset, you may have placed a non-refundable deposit to hold the same for some time while evaluating other options. This is an example of an option type.

Similarly, you might have heard that Bollywood is buying an option on a novel. In opting for a novel, the director buys the rights to make a film on the novel before the specified date. In both the house and the script case, someone has put some money in for the right to buy a product at a certain price before a certain date.

Options trading are a powerful asset as they can enhance an individual’s portfolio. They do this through additional income, security and even leverage. Depending on the situation, there is usually an option scenario suitable for an investor’s goal.

What is Call & Put Option?

Option Trading – Option trading also has two options call and put a call option and a put option:-

call and put options trading – call means bullish market and put means bearish market if you trade call options then you are trading bullish If we are trading, we are buying calls, then we are investing more money, if we buy puts, then we are investing more money in bearish.

What is call option in share market – If you buy in call trading then it becomes bullish and if you sell inside the call then it becomes bearish.

What is Put option in share marketĀ  – If you buy put then it becomes bearish and if you buy then it becomes bullish.

Option Trading – You will profit only after the price above which you bought the call. In the same way, if you buy Put, then you will benefit only if it goes below the price above which you bought it.

How to make money in options trading?

In option trading, we can earn money in four ways like:-

Call Option Buy
Put Option Buy
Call Option Sell
Put Option Sell

People earn money in these four ways in Option Trading.

How to do Option Trading

To do option trading, you cannot buy 1 share of a company, you have to buy it in LOT. A lot of Nifty50 is 75, but there is more in the stock. To buy any share and option of Nifty50, Bank NIfty, you have to go to your Demat Account. After that, whatever you want to buy, you will get to see Option Chain, you can buy Call or Put whatever you want to buy from it.

There is a lot of risk in option trading, so start it with complete information, money can also be made in it, so only after knowing more and more information about it, do trading in option trading.

 


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One thought on “What is Option Trading ?

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