OPTIONS

 OPTIONS:-

An option is a financial derivattive in which a contract sold by one party to another party. The party who solds option is called Option Writer and one who holds or buys is called Option holder.  Call option give the option to buy for certain period of time for certain price, the buyer expecting the Index or stock to go up and Put options give the option to the buyer expecting the price of Index or stock will go down.

Trading in options is very risky and its one securities it can be used in many ways. Most of the traders use options for speculative purpose and hedge funds are using it to reduce risk of holding their assets.