Future and Option trading?

First get your hand firm on cash market. Once you have aced in it then start learning Futures and Options.

Its very complicated and traders use it to hedge their positions against the equity market to retain their money.

If equity cash market rises the F&O loses and other way arround.

its like you bid 10 bucks for market to rise and you bid 10 bucks for the market to fall. So you don't lose your money. Limiting the risk this way is called hedging. So stay away and don't just follow on tips if you want to take a bid hit on your finances.

regards

dharmanath

A best thing to start with is to read books and search for some online trading cources. Move to any broker and spend 15-20 minutes. You can go through some of these books 1 Futures & Other Derivatives by John C. Hull 2 Investment Analysis & Portfolio Management by Prasanna Chandra For futher do take help of internet and online trading platforms. Search some sites or demo online tradinf platforms, through which you get maximum help. Sincerely, Jhon

Futures and options trading is used a lot in trading of commodities (raw materials such as agricultural produce and mined ore). A futures contract is a way for a farmer, for example, to protect himself from price fluctuations to avoid losses around months down the line at harvest time by locking in a price. Manufacturers who need to buy raw materials months down the line also use it to lock in a price for goods they will purchase later on. I have found it a very hard process trying to understand futures and what is known as "hedging". Basically for people just interested in trading, it is a highly-leveraged investment so you can "buy" way more than you can afford to, but if the value of your investment falls, you end up shelling out way more than you invested too, I think. Once I finally crack it all, I might have a go at writing some short kind of really simple dummy guide for the internet. I've found people who work with futures or know about them struggle to explain it in really tangible terms. I would do a better job myself here but would need a few pages to break it down!