Future or options, which is better to trade in Stock Markets and why?
I want to explore the potential of future and options. Which i should start with as a beginner?
Option & future both are use for trading pupose for making quick return,
it schould be done by professional person with strict stop loss.
First i will advice you to read these posts:
Lets analyse your question with different parameters:
Investment: Less investment is required in Options compared to futures.
Return: Return is same in both options and futures.
Time: Futures take less time to give returns
Risk: Risk is high in futures as loss is not limited but in options loss is limited upto your investment.
As a beginner i will advice you to play in options instead of futures, even if you lose you can play within your limits.
Stock Guru@ yes option can be buy with less investment and future required lot size investment.. but I not favour for beginner to start with option as to know how option work it very tricky then future as future is simple as like cash Market only difference is that you required huge investment and limited time to hold and you will be not part of any dividend and end of expirey of day its premium increase or decrease and as par spot.
Future:- its idealy suited to high net trader and who want to earn high return with less investment within in month or 2 month.
:- SUITED FOR HIGH TURNOVER CUSTOMER AS BROKERAGE IS LESS AS COMPARE TO CASH MARKET