How to Make Your Living with Derivatives Trading?
Futures and Options (FnO) trading is a key part of the derivative market which has a high potential for making profits. Yet it also comes with substantial risks. You must have well-planned strategies and strict practices for managing risk if you want to be successful in F&O trading. Developing a Trading Strategy To earn money from trading in Futures and Options, it is essential to have a good strategy, knowledge about the market and continuous learning. Given below are a few strategies as well as some tips: 1. Understanding Derivative Contracts F&O trading makes use of derivative contracts which are futures and options. Futures agreements enable the purchase or sale of the underlying property at a price agreed upon in advance for delivery at a later date. 2. Creating Short Positions in Equity Futures In a bear market, it is often profitable to sell futures because they can decline steeply. This is the strategy of creating short positions in stock futures contracts by selling