Product : Stock Trading
Companies sell a portion of ownership to public in order to raise capital for further expansion. This portion of ownership is commonly known as shares, stocks and equity. Trading on equity occurs when the equity of companies are sold or bought in the stock exchange.
Futures are standardized contracts that happen over exchange. Both the buyer and the seller have the obligation to fulfill the contract. As future prices change every day, the difference in prices is settled on daily basis through a process called marking to market. Future contracts are the best hedging tools and are used to limit the risk exposure faced by an investor.
Options allow more flexibility as the buyer has no obligation to fulfill the contract. Call option gives the right to the buyer to purchase the asset at particular price by paying premium whereas the seller of the call option has an obligation to sell the asset at specific price. Put option buyer has the right to sell asset at specific price whereas the put option seller has the obligation to buy the asset
Commodity trading is an essential part of the financial market that provides investors the opportunity to rule out market volatility and make profits. Indian market offers a wide variety of commodities for trading, which are classified as precious metal, base metal, energy and agro-based commodities. More often online commodity trading is traded in futures, where future contracts are traded and not commodities itself.