What are Nifty Options, Call Options & Put Options - Samco Securities
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What are Nifty Options ?
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Transcript of What are Nifty Options, Call Options & Put Options - Samco Securities
What are Nifty Options ?
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Understanding Basic Options• First we need to understand what an option instrument is just like
derivatives futures, options too is an derivative product where the buyer holds a right to execute option of either buying or selling of shares or another underlying at a certain pre-determined price (also known as the strike price) during a pre-determined time period.
• The 2 types of Options are Call Options i.e. the Right to Buy and Put Options i.e. the Right to Sell.
• A Call option gives buyer an option to “BUY” underlying asset at an agreed upon price with a expiry date on this contract. Likewise Put gives buyer an option to “SELL” at agree upon price with a expiry date on this contract. Hence, Call buyer would want prices of the underlying to go up and put buyers would like to see prices of underlying falling.
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Meaning of Nifty Options• Nifty Options is a derivative instrument wherein the underlying
asset is Nifty; like Nifty50 futures it also has lot size 75, different strikes and multiple expiry periods. It is a derivative like Futures but unlike Futures your profit/loss will not be linear depending on the up move/down move in NSE NIFTY.
• The trader in options pay only the option premium of the actual value of the underlying asset i.e. you need not pay the value of 75*NIFTY50 future to buy the options lot. The premium/ option price is determined using options calculator comprising of complex mathematical models and is usually nominal compared to actual Nifty value. You can check option prices here – Nifty Options Live.
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Trading in Nifty Options – Quick Facts
• Lot size of Nifty Options – 75 (Subject to revision from time to time)
• Margins – To calculate margin requirements for trading nifty options, check out SAMCO’s nifty options margin calculator.
• Buying Options (100% Premium has to be paid, no separate margin collected)
• Selling Options (A total margin comprising of SPAN + Exposure Margins usually similar to NIFTY Futures Margins is applicable)
• Brokerage and Transaction Charges – The Brokerage applicable on Nifty Options with SAMCO is on a per order basis irrespective of the number of lots in a particular order. Calculate the brokerage and transaction expenses for trading nifty options at SAMCO’s nifty options brokerage calculator.
• Underlying – NIFTY 50 Index
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Contact US• SAMCO Securities Limited / Indian Trading League
1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra, India.02261699000 / 02222227777www.samco.inwww.indiantradingleague.com
916 Devpath Building, Behind Lal Bungalows,Off C.G Road, Navrangpura,Ahmedabad – 380009Contact - 7405159636
www.samco.in www.indiantradingleague.com
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