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Advantages of Options Trading

Posted By On 11/08/2007 04:32:00 PM Under
1. If you are one of those who has a great desire to make profit from Futures and options than for a retail investor Option trading is much better suited than Futures trading considering the fact that the risk of loss is limited.

2. Futures margin call catches a number of traders unaware and have to book losses which is difficult for them to digest and thus bring a sense of disgruntlement and in sharp falls future traders are more likely to suffer if they are on the wrong side of the stock market.

3. Straddle is the best startegy to gain in case market can move in either direction. So if you do not have adequate cash to buy the complete lot of future with cash than its always better to trade with options only.


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