There are Futures and options.
First let us see some interesting things about options

These categories need a bit education,a bit more study,a bit more alertness to deadline dates(options may expire worthless beyond expiry dates),need more funds as compared to stocks.

First thing to trade options,thanks to a backward sighted government,you need to be an income tax payer and need to be having a PAN number,
only then you are eligible.
Income tax?

What can you expect from a finance ministry who if left free and unchecked would like to tax a 10000 rupee cash withdrawal by common man from a bank? All the Harvard education goes down to tax the common mans meagre earnings.It is no wonder the government seems to have no idea about day to day cost of living in cities.Thanks the communist party who keep things under control. Enough of that useless stuff.

What are options?

A Call Option
In the case of an equity option, a contract that gives the buyer the right, but not the obligation, to purchase a set amount of stock (usually 100 shares) at a predetermined price anytime before the contract expires (American Style option) or at expiration only (European Style Option). The predetermined price is known as the strike price.

A Put Option
In the case of an equity option, a contract that gives the holder the right, but not the obligation, to sell a stock at a set price for limited period of time. The seller or writer of the option is obligated to buy the stock at the strike price in the event that the option is assigned.

Holder (Buyer) Writer (Seller)
BUYER OF Call Option= HAS Right to buy OF OPTION HAS AND SELLER Obligation to sell
BUYER OF Put Option = HAS Right to sell AND SELLER OF PUT OPTION HAS Obligation to buy

There are some advantages of options.
Let us look into those things.

Options are used in Direction based Trading
Most stock traders first begin using options, it is to purchase a call or a put for direction based trading, which traders practice when they are confident that a stock price will move in a select direction and they open an option position to take advantage of the expected movement. They may decide to invest in options rather than the stock due to the limited risk, high profits and less amount of capital needed to control the same number of stock.

If you are (bullish), buying a call option gives the opportunity to benefit from upside potential of a stock without having to risk more than a fraction of its market value.
If you are bearish (expect a downward price movement), buying a put gives you advantage of a fall in the stock price without paying the large margin needed to short a stock.

With stocks you only have to worry about one thing: price.
option traders have to think differently because of the additional variables that affect an option's price and the resulting complexity of choosing the right strategy.
So, once a stock trader becomes good at predicting the future movement of a stock's price, he may figure it is an easy transition from stocks to options.
In options you have three shifting parameters that affect an option's price:
price of the stock, time and volatility. Changes in any one of these three variables will affect the value of your options.

With options you have some advantages like leverage, pay less buy more.
you can play the market both ways,buy or sell unlike stocks.
If the underlying stock price goes up by say, 5%,the options may shoot up by 15% or 20%.Similarly the fall in stock price by 3% may reflect by a 10% fall in optionvalue.
There is limited risk and unlimited profits under certain conditions.
It is desirable to trade put and call options on the "buy" side exclusively.Some people Strictly avoid trading on the "sell" side of options where your risk is unlimited. A buy trade (when entered as a limit order) has a strictly limited and pre-determined risk with theoretically unlimited profit potential. Literally, it is impossible to lose more than what you pay for the options you buy. Using this strategy guarantees no margin call or deficit.

Option trading affords us one of the highest degrees of leverage to be found in any investment.
All these advantage factors mean nothing if you don't know what to buy and when. That's why you need to track the markets and select only those trades considered to have the highest probability of success with the lowest risk. And do remember there is an expiry date.
You can catch truly great leverage in option trades, and when you combine leverage with the strictly limited risk and precise market timing, then surely you can have the best with limited risk capital and unlimited profits.

Options work very simply: If the underlying stock upon which you bought your option doesn't move the way you choose, you can lose all or a portion of whatever amount of money you decide to put in. It could be as little as $500 if you like -- you decide how much you want to risk...

However -- if the stock does move the way you bet -- you can make a great deal of money.
Because while your downside is always limited to the amount you decide to risk -- your upside profit potential is unlimited! And therein lies the powerful secret to profiting from options: limited risk, but unlimited return.

Another great thing about options is that they let you profit in any market. You can profit when prices are going up -- and when prices are going down.

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