Our trusted partners in progress…
Derivatives
- Home
- Derivatives
Derivatives
National Bulls is a franchise of Progressive Share Brokers Pvt. Ltd., Mumbai. We offer trading in Futures and Options of Index and Stock on the NSE. In FnO trading, one can buy/sell positions in index or stock(s) contracts having contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favor (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading.
An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific (expiry) date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.
To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.
The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.