Trading is not much different from playing poker game or betting on various other things.
It’s just a structured game where rules are not made by anyone, but needs to be followed by everyone in game.
Understanding those rules and adjusting yourself is a continuous process which will never end. As #SEBI would keep on changing rules.
The important thing to understand is any thing in life if we want to succeed we need patience and dedication.
Apr 22, 2020 • 10 tweets • 3 min read
WE ARE NOT IN THE SAME BOAT ...
I heard that we are in the same boat.
But it's not like that.
We are in the same storm, but not in the same boat.
Your ship can be shipwrecked and mine might not be.
Or vice versa.
For some, quarantine is optimal: moment of reflection, of re-connection. Easy, in flip flops, with a whiskey or tea.
Let’s understand from a broader perspective what’s the difference between these two.
Would not like to discuss the construction difference between them if you don’t know stop trading #options
Although both are #derivatives, Futures and Options are entirely different in terms of their potential #risk and #return , #leverage and how they work.
In #Futures Trading, both the buyer & the seller are #obligated to settle the contracts on or before expiry ie cover shorts or longs or rollover to next contract, regardless of how the underlying asset price moves.
When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.
While the goal for "#vanilla" #buyers is to have the option be in the money at expiration, the selected option depends on the amount the trader wants to spend and their risk tolerance, as well as their specific expectations for the underlying stock.