Understanding options contracts is crucial for trading derivatives - but don't worry, this Video has got you covered!

Dear investors, Options are financial derivatives!
Financial derivatives are pegged to real assets like gold, oil, and equities
An options contract is an agreement between two people: the buyer and the seller.
Here are three important facts you need to know about options contracts
A: An Options contract gives you the right but not the obligation to buy or sell the underlying asset
B: Options contracts are executed at a pre-determined strike price and expiry date. The strike price is the price at which the trade will be executed, and the expiry date is the date till which the contract is valid!
C: Call Options give you the right to buy the underlying asset, while Put options give you the right to sell it!

Remember that there is no obligation in either case!

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Time Stamp:
0:00 Intro | IIFL Securities
0:05 what is Financial derivatives
0:15 what are the Option Contract
0:20 important facts about Option Contract
1:02 Closing remark

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