Future & option


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Querist : Anonymous

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Querist : Anonymous (Querist)
20 December 2011 hello sir, pleale give me answer...

what is the main difference between future & option contract in stock market?..

and i really want to know more about stock market... so which book is preferable to gain the basic concept of stock market???

20 December 2011 the options,the buyer has right to purchase the underlying asset at his optio.he is called call holder.
the seller(option writer) has the obligation to fulfill the contract if the holder excersizes his option.


In Futures BOTH the parties have the obligation to fulfill the contract. and there is also no counter party risk because the mark to market settlement system takes care of default risk.

Lalit Kumar (Expert)
01 January 2012 Fundamental analysis for Investors from Raghu Palat is good one..


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