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Futures and Options: Options trading is reaching a record high, only the right option will benefit
New Delhi. Options trading on the stock exchange has reached a record high in 2021-22. Options trading accounted for over 97 per cent of the total contracts in the futures and options (F&O) segment this year, up from 83 per cent five years ago. Most of the trading remained focused on Nifty and Bank Nifty index options.
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Options trading has hit record highs this year due to new investors entering the market, increasing margins in the futures segment and weekly expiry cycles. Expert Rahul Rege said that retail-small investors are betting on options trading to get more profit in less time.
90% retail investors lose
Experts say that in this type of trading, most of the money is made on speculations and bets are placed on the rise or fall of Nifty in a particular week. Due to this, more than 90 percent of retail and small traders are losing their money, which is not good for the future of the market. Loss is being made only on the basis of guesswork without thinking.
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Because of these reasons
Market expert Chandan Tapadia said that initial margin is required to trade. If the position is not favorable then mark to market margin has to be paid. The buyer has to pay only the premium and the seller holds the investment portfolio as collateral for the margin requirement.
this is the right option
The options section has become like a game for small traders who bet small amounts of Rs 15,000 to 20,000 in it. Experts say that this money should be invested in mutual funds through SIP or in better stocks. With this, investors will be able to earn good profits easily.