I would like to know few things,,,
There is TWO scenario , kindly tell among this two over the time say 5 years where will I get maximum return and following which route it will be a WEALTH BUILDER.
Scenario 1—Buying stocks in cash market worth Rs.10lakh and
Scenario 2—-Buying through F&O (in LOT) worth Rs.10 lakh. Here I mean to say both in Futures (LOT Rs.10lakh) and in Options (LOT Rs.10lakh). (But here what will happen after the EXPIRY to both future and option i.e F&O portfolio)
Basically F &O are for hedging i.e by taking a opposite position ONE can offset his loss.
Theory , says in CASH market the market value of investment almost will never be ZERO but it is not in the case of F&O . If it is so than how it can happen in F&O ,,, I have understood the BUY (CALL,PUT) part that the max loss is the premium . But I have not understood the SELL (CALL,PUT) part how can the person make UNLIMITED LOSS. Can’t the Person STOP his loss by closing his position here I understand that he has obligation is there no way OUT.