For any individual, earning matters a lot and hence to have more income people try various options from where one can earn more. There are many options such as jobs, businesses, and professions from where one can earn well. One of the beautiful options is trading in the stock market. Many people in the market have used this option as a regular source of income, and hence they trade in various segments of the stock market. The choice of segment and type of trading depends on one’s personal preference and many other factors.
The options:
In the share market, one can deal in the shares as well as other securities. However, a majority of the people prefer to have trading in shares only. There are primary to options available to a trader which are known as cash and derivatives. In the cash segment, one can go for as small as a single unit also and hence it is believed as safe for the retail traders. There are also two sub-segments in this main segment which are known as intraday and delivery. In the derivatives also there are two segments known as options and futures.
Cash Segment:
The intraday is a segment where one can buy and sell the shares in same trading session. In fact, if one has bought the shares in this category he needs to square off the position before the end of the trading session. In case one does not do so, the system automatically takes necessary action and square off the position. In this segment, one has to be more careful when the market is volatile as one can earn a good profit, but at the same time, the chances of losing the money here are also high.
Delivery is a good option for the people who love to invest in the shares and fetch benefits in future. Here the investment is high and also the amount to be paid as brokerage is high. However, the chances of losing amount here are reduced. One can go for the service providers such as wisdomcapital.in who are known in the field for effective service in the stock market.
Derivative segment:
In the derivative segment, one has to purchase a whole contract at a fixed price. The contract carries an expiry date which may be of a month or more depending on the contract. The chances of getting handsome profit in this segment are high as the trader can have ample time to have reverse trade also in case of loss. However, if one does not have sound knowledge for this type of trading one must not go for it else as it can also lead to a huge loss. Here one cannot go for a single unit as he can in the delivery trading. Hence it is important for the trader to have the right strategy and proper research before hitting the trade in any section. However, as per the market experts, the intraday trading is a good option for the day traders.
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