Equity Umbrella

Introduction

Futures and options (F&O) are complex and leveraged financial instruments that can lead to permanent loss of capital if traded without understanding the risks, Futures and options (F&O) are complex and leveraged financial instruments that can lead to permanent loss of capital if traded without understanding the risks.

Advantage In Derivative Trading

• Liquidity
• Cost efficiency
• Hedging
• Low Execution Cost.
• Futures are a great diversification option

Risk Involved In Derivative

• Buying options can result in losing the entire premium paid,
• If the price does not move in the expected direction for future positions, the losses could be higher than the initial margin,
• There are physical settlement risks for stock futures and stock option positions that expire In The Money (ITM).
• Risks of giving your login information to scammers who claim they can help you make more money by managing your money or giving you financial advice.
• Higher leverage may lead to losses higher than the initial margin.

Plan