Options vs. Futures vs. Stocks
Stocks: Simple ownership.
Futures: Obligation to buy/sell at a future date.
Options: Rights without obligation.
Options are less risky than futures (for buyers) but more complex.
Real-World Examples
Example 1: You buy Nifty 20,000 Call at ₹100 premium. Lot size = 50.
Cost = ₹5,000.
If Nifty rises to 20,200, your profit = ₹10,000 - ₹5,000 = ₹5,000.
If Nifty stays below 20,000, you lose only premium = ₹5,000.
Psychology & Risk Management
Options are not just math, they need psychology:
Don’t over-leverage.
Accept losses early.
Use stop-loss.
Stick to defined strategies.
Manage emotions of greed and fear.
Stocks: Simple ownership.
Futures: Obligation to buy/sell at a future date.
Options: Rights without obligation.
Options are less risky than futures (for buyers) but more complex.
Real-World Examples
Example 1: You buy Nifty 20,000 Call at ₹100 premium. Lot size = 50.
Cost = ₹5,000.
If Nifty rises to 20,200, your profit = ₹10,000 - ₹5,000 = ₹5,000.
If Nifty stays below 20,000, you lose only premium = ₹5,000.
Psychology & Risk Management
Options are not just math, they need psychology:
Don’t over-leverage.
Accept losses early.
Use stop-loss.
Stick to defined strategies.
Manage emotions of greed and fear.
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
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
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
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.