What is futures and options in stock market with examples


How are Stock Futures different from Stock Options? In stock options, the option buyer has the right and not the obligation, to buy or sell the underlying share. The chapter also includes a guide on how to interpret the change in open interest with respect to ch.

What are Stock Futures? Describes what a forward contract means along with a practical illustration of the concept. This chapter is a primer on how future contracts are priced with respect to the spot prices. How are Stock Futures settled? How can an investor benefit from a predicted rise or predicted fall in the price of a stock?

Do I have to pay mark-to-market margin? An introductory article on Futures. How are Stock Futures priced? This chapter gives you an overview of how to use a margin calculator. This chapter gives you all the necessary information that you need to know before placing your first futures trade.

What are Stock Futures? What is the market lot for Stock Futures? In stock options, the option buyer has the right and not the obligation, to buy or sell the underlying share.

The chapter also throws light into why brokers and exchanges charge margins. What securities can I submit to the broker as collateral? Why are the market lots different for different stocks?