Call put trading is one of the most popular options in the stock market. Generally, the option contract that offers the buyer the right to implement the option and purchase the primary commodity at the strike rate within the time limit or before the expiration of the time is named as Call option. In the case of buying a call contract by the trader it?s said to be long a call One the other hand, the can be said to be sort if the trader sell the call contract to other. In this case the trader has to sell the primary commodity as the completion of their contract obligation to the exchange. One the other hand, the option contract that offers the trader to sell the primary commodity at the strike rate within the time limit is named as Put option. In the case of long a put the trader purchase the put contract and in the case of sort a put the trader sell the put contract to fulfill the obligation of the contract.


Call put trading facilitates the traders to operate their business more smoothly and fortify their business safety as well. Call option facilitates its owner with the right to purchase 100 units of share of a corporation at the agreed rate within the time limit. In case of rise in the stock rate the call option price will be go high and vice versa as well. Put is another most attractive feature of the call put trading. It?s a kind of option that offers you the right to sell the 100 units of the share at an agreed rate within the time limit. In the Call put trading the call option buyer always wish the rate of the stock to go high and on the other hand, the put option buyer want to utilize the opportunity of the down fall of the stock rate. The thing is totally reverse of these in case of the seller of both of the options.

The main drawback of the call put trading is that the change in the stock rate has to be happen within the certain period of time otherwise all will go in vain. As a stock holder it may possible to hold the stock for a long time by predicting the prospect of the stock. But in the case of an option holder it?s quite impossible. Its very possible for us to be efficient in the stock business if we study about the call put trading thoroughly.

Nifty options are simple vanilla options. It?s mainly the European options by the nature. There are lots of nifty options available within different strikes and have a small difference of 50 points between every option.


There are some of advantages and disadvantages of nifty option. Here, I try to discuss al these briefly as an aid to the investors especially for the new comers in the option trading.

Advantages of nifty trading:

Flexibility is one of most important advantages of nifty option. It can easily be used within a wide range of strategies like very conservative to the high risk.

Second one is the leverage. Nifty option facilitates an investor a fixed leverage without being committed to trade.

Third one is the limited risk. The amount of risk is so small that you don?t need to worry about it at all.

The last one is hedging. It allows the investors to alter or change their position to a suitable one when the stock price extensively fluctuates.

Disadvantages of nifty trading:

Nifty option has a bit higher cost in the percentage than trading the primary stock. This cost can significantly eat the profit.

Liquidity is another drawback of this option. As there is lots of array of various prices available, some investors experience low liquidity that creates complexity in the trading.

Nifty options are so complex that it requires a close observation and the maintenance as well.

Time decay is another most important drawback of the nifty option. As almost all the options are time sensitive, a good number of options expire worthlessly. This only happens with the investors who like to purchase the options.

In some especial cases the investors have to take unlimited risk that is really difficult for the new investors or the people who have shortage of capital. There is not any alternate way that can lessen the risk of these options like writing uncovered options.

In some especial cases the investors have to take unlimited risk that is really difficult for the new investors or the people who have shortage of capital. There is not any alternate way that can lessen the risk of these options like writing uncovered options.

In the nifty option anyone can easily formulate any plan to take benefit of volatility of the primary stocks as well as the prices. Most of the investors take these disadvantages seriously and try their best to make their step free of any danger. There are so many sites in the online that is ready to help the investors with lots tips given by the market experts, market news and with the analytic report regarding future market situation as well.

Call and Put trading options are two kind of option agreement. Generally, most people confused by these two options. These two options work on same principal but they are quite different. As a perfect broker you should not make such mistake because call and put tradingin very important for you.


call and put trading. are very important tools for brokers because these let them to limit the risks of playing the stock market, including with some other financial products such as futures and stocks. The first things you have to consider is that how the market works and then find a suitable trading method. Not only that but also you have to use it effectively. For this you have to understand call and put trading options very carefully. You have to consider what option is? And what is not.

Many people have wrong idea about put trading option and they think put option is trade something in the future. It is not this but a futures contract. You are purchasing a commodity a definite charge in the future. As a manufacturer you are assured that you can purchase the product that you need. One the other hand if you are an investor then you buy with the intension that the charge is going to rise and you can trade in future for benefit. So, put trading option is very impotent

A call trading is the option to buy the fundamental stock at a fixed price by a fixed date (the expiry). The consumer of a call can buy shares at a beat price until expiry. The writer of the call (actually the seller) is with that obligation. If the consumer decides to buy then the call writer is obliged to sell the shares to the buyer at a fixed price.

The actual difference between the call and put trading. is that you are buying nothing but right of selling and buying at a definite price in the future.

You may have confusion at this. Actually is little hard to grasp at first time. Imagine you want to buy a apartment building in the town. You didn?t able to sell your current house but you decide to buy the apartment in this year. So at this time you decide to make a conversation with the apartment owner and offer him the price of the apartment house with 20% on the top of that. You promise that you will pay in the next year and give him a deposit.

In this case you are purchasing an option and it is call trading option. You can purchase or not after a certain time period. One the other hand the owner is obliged to sell the house at the fixed price.