Investors who would like to take more risks with great profit expectations jump into derivative segment of trading. But some investors enter F&O segment, without even understanding the implications of the F&O trading. As F&O involves more fund requirement, both the loss and profit may be very much higher compared to the delivery based trading. Options trading is safer as the loss is limited to the option premium amount only. So the investors who are new to derivative segment, may try option trading. They may take some guidance from stock analysts to become familiar with option trading terminology like put option, call option, strike price and option premium etc.,

Important Notes - derivative tips, future market, option trading book, options tricks, currency futures, option premium, call and put options, meaning of buying call and selling call, straddle, butterfly chart, open interest, F&O securities, F&O ban details, daily future charts, future lot size, option margin, cost of carry, F&O expiry, F&O roll over

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In India, last Thursday of every month is the contract expiry date. Investors should exercise caution while going "Short" on these days as there are always higher chances of short covering happening in the after-noon session of the trading. The Sensex may exhibit high volatality on these days. Retail investors may opt to wait for the next day after the contract expiry date to reduce risk exposure.