Benefits of launching options trading in Crude, Silver, Copper, and Zinc

Benefits of launching options trading in Crude, Silver, Copper, and Zinc:

This will enable liquidity in the market.
Volume and Volatility can be expected in the market.
In the Index, the Nifty generates the highest trading volume in futures. Similarly, in Commodities, Crude oil generates the highest trading volume in futures.
Trading in Nifty options exists, whereas trading in Crude possibilities does not exist.
This will serve as a platform for aggressive traders in options to trade in Crude, Zinc, Copper, and Silver.
New clients can be expected, including those trading in the Equity segment.
With the recent announcement by SEBI, a single entity can be used for trading in multiple segments like commodity and equity, which will prove beneficial to many.

The outcome of the launch of options trading in Crude, Zinc, Copper, and Silver options

For trading in Crude, Zinc, Copper, and Silver Futures, a total span margin is required, whereas, for trading in Crude, Zinc, Copper, and Silver options, the premium amount is sufficient.

The lowest investment shall yield the highest returns.
Limited risk = Unlimited profit
The hedging technique can be used to minimize risk in options trading.
Brokerage will be lower in trading crude, Zinc, Copper, and Silver futures options when compared to trading in crude futures.

CTT charges will be lower in options trading

Writing off can be carried out in options trading, and as there are many strategies involved, a decent profit can be obtained.

 

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