davidjohn6366
111 posts
Nov 23, 2022
9:12 AM
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Future and Option market trading started way back in the 19th Century, and official trading in this market begin since 1848 the time when the Chicago Board of trade was established. Trading in Future and Option is considered to be bit risky, as the concept is having a sort of misconception in the mind of the traders. The thinking which prevails in the mind of the traders is due to the lack of insight in the market, and because of the insufficient data they suffer losses in all of their trading strategies.
Allotting the right to buy or sell something in future is the main gist of the Option market. When one gets a call option in Dow index future options, he's buying the right to purchase that Dow future at a particular price (called 'strike price') and time (called 'expiration date') in the future.
Trading Futures in and Option can be explained by the following points which could be helpful for the traders
1) When a trader gets a put, he sells the market since a call buys the market, and
2) When a trader sells a put, he buys the market since a call sells the market.
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