Wednesday, February 24, 2010

FUTURES & OPTIONS – CHOOSE THE RIGHT DERIVATIVE INSTRUMENT FOR TRADE

As we all know there are two types of markets viz., Trending markets and Range bound markets.

Investors will benefit trading Index and stock Futures in Trending markets and trading Index and stock Options (Calls and Puts) in Range bound markets.

Based on the market movements, we can confidently say that we are in the midst of RANGE BOUND market and it is prudent to trade in Options.

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