OPTIONS

Just as futures contracts minimize risks for buyers by setting a pre-determined future price for an underlying asset, options contracts do the same however, without the obligation to buy that exists in a futures contract.

There is no physical exchange of documents at the time of entering into an options contract. The transactions are merely recorded in the stock exchange through which they are routed.

Premium: The upfront payment made by the buyer to the seller to enjoy the privileges of an option contract. Strike Price / Exercise Price: The pre-decided price at which the asset can be bought or sold.Strike Price Intervals: These are the different strike prices at which an options contract can be traded. These are determined by the exchange on which the assets are traded.
EXPIRATION DATE:

A future date on or before which the options contract can be executed. Options contracts have three different durations you can pick from:

Near month (1 month)

Middle Month (2 months)

Far Month (3 month)
PLEASE NOTE THAT IN INDIAN MARKET ONLY EUROPEAN TYPE OF OPTIONS ARE AVAILABLE FOR TRADING.Open Interest refers to the total number of outstanding positions on a particular options contract across all participants in the market at any given point of time. Open Interest becomes nil past the expiration date for a particular contract.