How Stock will be Trade?

     Stock Option is an option given by a company, to an employee, to buy stock at a discount or at stated fixed price.   

Most stocks will be traded on exchange basis, which decides where buyers and sellers to meet and also the price on Particular Stock. The purpose of a Stock Market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of Investing.  

Most of Indian Traders use Stock Futures rather than Stock Options, because of Profit Potential and lacking knowledge in Stock Options. But the truth is Stock Future or Stock Option; you should have good knowledge in Stock Market Field.

Stock Future – The Future is an agreement to buy or to sell with the specified Price (with security at a certain time)

Stock Options – An Option gives the right one to buy or sell, Traders will use it when the Price comes, no obligation here. 

Types of Option: There are 2 types of options, Call Option and Put Option.

Call Option: A call Option makes the Traders to buy with the predetermined price.

Put Option: Put Option gives the Traders to sell at a particular Price. 

Advantages of Stock Option:

    No obligation at all

    Can Sell or Buy

    At a Set Price

    On a specified date

Disadvantages of Stock Option:

    Selling Option will be risky in Future

    Buying a call Option is bullish when you expect particular Stock price will rise.