What is the benefit of trading in Options as compared to Futures?

General
2

You can make and lose money at a very fast rate.

Read 10.3 in this http://zerodha.com/varsity/chapter/delta-part-2/

2 Likes
3

Some of the advantages of Options trading are

  1. Cost Efficiency

  2. Less Risk - Depending on How You Use Them

  3. Higher Potential Returns

  4. More Strategic Alternatives

Happy Trading !!!

5
  • You pay much less STT

​- You can easily trade at OTM prices (not possible in futures)

  • Less capital intensive (in case buying options)

  • Taking advantage of faster premium erosion due to time value component in the later half of the month (in case selling options)

6

Sir you are talking about Futures or Options in the above answer?

7

ohh sorry ! I was talking about options. They are riskier than futures. Read about all the factors that affects the premium of a option before trading them. Refer zerodha varsity to read about them, They have explained beautifully by taking a lot of examples.
P.S. No sir please.