Basics of Options Trading FAQs

How Forex trading is different from Options trading ?

Options trading allows you to trade contracts that allow you to purchase or sell the underlying asset at a specific price and for a certain period of time. The price movement of an underlying asset is what you use to profit. Forex trading involves the use of currencies to trade and make profit from fluctuations in currency rates.

Options Trading Vs Forex Trading

Options Trading

Forex Trading

For a short time, markets are only accessible.

You can find markets around the clock.

To execute trades, you will need to pay brokerage.

There is no brokerage.

Forex trading offers a lower profit potential than forex trading.

Forex trading offers a significantly greater profit potential.


What is the work of Options ?


How many types of Options ?


What is strike price of option ?


When does Options expire?


What is the process for trading options ?


How futures and Options are different ?


How Nifty can be traded ?


What will happen when an option expires out of money ?


Do I have to pay margin in Options ?


How can the Options contracts be settled ?


What do you mean by Covered Options ?


When do you mean by Naked Options ?


What does American Options refers to ?


What does European option mean? ?


In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?


How to take decision on either to buy /sell call Option or put Option ?


Is it possible to trade on option of any stock or index?


How Square off and exercise an Option is different ?


What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?


What does time value of an Option mean ?