Option Trading Beginner & Foundation Course in Stock Market

Derivatives means futures and option. Its value is derived from its underlying asset, giving you an example petrol price is derived from crude oil, petrol is a derivative crude oil is an underlying asset. One more example curd, curd comes from milk, so curd is a derivative milk is an underlying asset same like that in our financial market, reliance futures and option value is derived from its underlying asset. Reliance share .

There are more than thousands of stocks in NSE but only 191 stocks are trader in futures and option so you don't have future and option trading for all the stocks are there in the market.

Now let's look into the difference between futures and option in future trading you will be paying span margin example Reliance share is 2350 Rupees into the lot size of 250 which is there in futures and option so the total value comes to Rs 5,87,500 rupees but here in future trading your paying only around 1 lakh 7000 which comes to around 18% margin the margin is calculated subject to market volatile of the share but it will be roughly around 18% for Reliance most of the time so this 18% value which your paying is called as an span margin.