Best Option Trading Strategies For Beginners

As you know, there are two ways to trade in the stock market, through cash markets and derivatives. While most novice traders are familiar with trading stocks in the cash market, derivatives still remain a mystery. In this blog, we will discuss option trading for beginners through simple option strategies.
Derivatives are financial contracts whose values are derived from the value of the underlying asset. These contracts generally have pre-defined parameters such as quantity (lot size), quality (in case of commodities), and expiry date. Derivatives make it possible for traders to take trades with indices as the underlying assets, which would not be possible through cash market trading. They are traded on the National Stock Exchange, which also allows trading of currency derivatives. Let us take a look at the different types of derivative contracts.
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