⚠️ Basics of Futures, Options & Trading
This section is for awareness only. These instruments are high-risk and not for beginners.
📦 Simple Analogy: Buying Mangoes in Advance
You agree today to buy 100 mangoes after 1 month at ₹10 each. If the price rises to ₹15 — you profit. If it falls to ₹6 — you still pay ₹10 and lose money.
This is how Futures work.
This is how Futures work.
Options add a twist — you pay a small fee (premium) for the right to buy/sell, but you're not forced to. So you can walk away if the market turns against you.
📘 Key Terms (Very Brief)
- 📝 Futures: Obligation to buy/sell something at a fixed future price
- 🔐 Options: Right (but not obligation) to buy/sell at a price
- 💹 Premium: Fee you pay for buying an option
- 📊 Leverage: Trade with borrowed money — increases both risk and reward
⚠️ WARNING: Futures & Options are risky and complex.
❌ Can lose more than you invested
❌ Not suitable for new investors
❌ Avoid if you haven’t mastered long-term investing and psychology
❌ Can lose more than you invested
❌ Not suitable for new investors
❌ Avoid if you haven’t mastered long-term investing and psychology
🧠 Tip: Learn basic investing first. Only explore trading once you’ve built a solid foundation.
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