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Trading options offered on the stocks or commodities instead of stocks themselves is known as options trading. Option trading is many times confused with future trading but there is a lot difference between the two. To be precise option trading is a derivative product where the buyer/seller gets the right to buy/sell an asset on a predetermined price. On the other hand future trading involves the trading of the stocks themselves. Option tips are classified in two basic groups call option and put option and these two groups together provides the opportunity of creating n-number of option strategies for trading. These strategies are so strong that they are capable of giving wonderful profit whether the stocks trail upward or downward. They are far more competent in the consolidate market. An option call which is on buy side is known as call option and the one on the selling side is known as put option. There are two type of option one that is exercisable on or before the expiry date are called as American Option and the one which exercised on the expiry date only are called as European Options, the price at which the option tips is exercised is known as exercised price or Strike Price. The major benefit in option trading is the amount of margin required is very less as compared to the trading in stocks or futures, that’s why the trading in options is also known to be leverage trading. The USP of option trading is leverage which enables the small traders to trade safely in it. Well if we talk about the initial stages of option trading it was supposed to be based on hedging concept but nowadays as it is taken to be on leverage basis it has become the most profitable mode of trading involving a very little amount of money on risk. Thus you can earn much profit on minimum risk. The benefit of leveraging is that we can choose variable amount of strike price this strategy is good for both aggressive and conservative traders. If the proper strike price and expiration date is chosen than the traders can earn maximum profit. How to Start Trading in Option Market? For staring the option trading one needs to open an online option trading account with a broker or a brokerage firm which provide you the minimum brokerage for trading along with maximum limits. Take a deep study of the market and stocks, for the stocks that are moving upward one can go for call option strategy and the one which are trailing downwards you can follow the put option strategy. Once you get familiar with basic strategies of option trading you can move ahead with complex one or rather can take help from some of the leading advisory and research firms. There are 7 exchanges in US listed for standardized option trading; anyone can trade through any of the exchange with a reliable broker and under the guidance of the experts of the advisory firms. The right advisory firm can able to provide you the Accurate and free option tips for intraday trading
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