In an online chat with Get Ahead readers on October 9 Nithin Kamath, CEO, Zerodha.

Futures and options requires some commitment in terms of time to learn how to trade and then tracking your trades once you have taken them. If you are a positional trader, then I guess a person who can commit atleast a couple of hours everyday.

Also, the business involves leverage and can be an emotional roller coaster, so a person who can handle that volatility. Which books did you read to become an expert? Best books to get started with are those which talk about the good habits of profitalble traders as mentioned below. But once you are done with that, it is self discovery in reading and researching on what strategy best suits u. Yep, experience is the key, important thing is to learn from your experience and not make the same mistake twice.

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The only way to learn trading is by actually putting up your money, only then will what you read make sense. But it also important that the money you put is something you can afford to lose. As I said earlier, try reading about what most profitable traders in the world did right in the book Market Wizards.

What does it imply and how to make money using this high implied volatility? Usually out of the money options have a higher IV, the trade typically could be if it is much above the mean IV, it could be a good time to sell them and much below the mean time to buy. If i sell a call on starting of month ex. How can i calculate margin required for writing a option? We provide a tool called SPAN calculator, http: We will be soon providing a similar tool on our website which can be used by everyone.

Don't have the exact numbers but the range is between 10 to 40, at the lower end better to buy options and at the higher end to write them hoping that it will revert to the mean.

What is 777 binary options minimum trade or statistical volatility? How does it affect pricing of futures and options? Historical volatility is simply historical volatility in the price of the underlying.

Nifty futures trading basics affects options more than the futures, higher volatility usually would mean option would be priced higher. Yes liquidity is pretty bad if you go for anything other than present month. Also the activity in stock options is really low. There is no preset strategy to trade on expiry day, nifty futures trading basics you have to be careful is about not letting your in the money options expire you rather sell it on the exchange rather than holding it till the close of trading on the expiry day.

The reason for this is because the STT on expired options which are in the money goes up significantly.

How can I calculate it? IV of an option contract is the value of volatility of the underlying instrument.

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Most trading platforms have an in built tool to calculate IV, this is typically using the Black Scholes model. Risks associated are the same, since you are trading with leverage, i. How can I make binary option trading signals algobit no minimum deposit on results day. A lot of benchmark stocks will be announcing their results work from home mainframe jobs in bangalore october As mentioned in South coffeyville cattle auction query earlier, buying both calls and puts is the best bet when expecting volatility in the markets.

What makes more money? What are the risks attached? But leverage is a double edged sword, so the risk also goes up quite a bit. But how do they help me make profits? What are the risks associated with such strategies? Straddles and strangles are option strategies that you can take when instead of direction of the markets, you are betting on the volatility.

Safer than naked options trading because your risk is hedged. Which are the best books to read? The best way to start off trading markets is by knowing what the profitable traders do, so in that context Market Wizards by Jack Schwager is a good way to start. ZaraBol - Trending Topics. NewsApp Free Read news as it happens Available on.

How to make money by trading in futures and options Last updated on: Here is the unedited chat transcript. How does a call writer and put writer make money? Is it advisable to buy calls and puts or sell them?

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