Derivative contracts have pre-defined margin requirements and expiry dates. They are held at a recognized stock exchange where exchange acts as mediator and facilitator. Derivative contracts are of two types – Futures and Options also known as F&O. Future contracts are the one in which both buyer and seller exercise contracts by using a nominal amount called as margin. At the end of the day the account gets adjusted with notional profit/loss called mark-to-market and if the amount drops below minimum margin requirements the account holder is required to deposit balance to continue position or else the contract will be squared off. The contract will expire on squaring off by client or on maturity date, whichever is earlier
Option contracts are like insurance contracts where one pays premium to cover against the adverse movement or else it expires on maturity date, in financial market it is called Hedging.
To make it more interesting option contracts also provide us the platform to trade either side of markets and they are the cheapest instrument available to enter the market.
Option contracts are available with pre-defined strike prices and they are of two types – Call options and Put options. If someone is bullish on market then there are two ways – either Buy Call Option or Sell Put Option and same way if someone is bearish on market then either they can Buy Put Option or else Sell Call Option. If we buy an option then loss is limited to premium paid only and profit potential is unlimited. If we sell an option then profit is limited to premium received only and loss potential is unlimited.
A. Pan India Presence: You can trade from anywhere; geography is not a barrier anymore to open an options and futures trading account.
B. Easy Access: You can access your account online as well as offline.
C. Regular Updates: You can get alerts like new schemes and offers. NC wealth also sends curated tips based on your trading pattern.
D. In-Depth Research: Not just executing the trades, but the brokerage also provides the right tools to pick the right product. These tools are based on your financial requirement, along with related in-depth market research and analyst inputs.
E. 24/7 Customer Support: There is dedicated customer help desk along with a web-enabled 24/7 back end to help you navigate the world of derivatives trading.
F. Seamless Processes: An options and futures trading account with NC wealth solutions takes very little time to open. Moreover, with the help of online access and smart technology, investors need not maintain paper receipts for trade transactions.
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Usually, derivatives are regarded to be short term trading instruments and traded on the recognized exchanges. You can sell or buy derivatives on exchange similar to stocks. For, this, you have to place your order with reputed brokers like us at NC Wealth Solutions Pvt. Ltd. where we will promptly execute it on your behalf and simplify the investment process. You can invest in derivatives in the following ways:
Online – On your desktop through different trading platforms
Call-n-Trade (for online trading clients)
Contact or visit your nearest branch office to place your orders.