SHARETIPSINFO >> Articles Directory >> Free Money in Stock Market: Conversion
In a stock market, the market is played by the buyer and the seller in the market which is also called a contract between them. This contract is formed by the buyers and the sellers which contain the seller rights as well as the obligations made buy the buyer. The rights which the buyer possesses are that he has the right to purchase the stock according to the price offer by the seller in the share market. In the meantime the obligations of the seller are that he has to sell the stock according to the price which the buyers want to buy. So, in this way transaction i.e. selling and buying of the stocks is done with a contract with a certain specific of time. There are certain ways and option in which our money invested can be prevented, in contrary to this option besides protection of the stock, this option can be used for the kind strategy which is arbitrage in which a traders or investors can earn maximum profit even if the market is very high or low, that means there can be no loss for the inventors as well. This strategy called arbitrary strategy is known as a free risk strategy, where no loss is found in the market. We would discuss about free money in stock market: Conversion.
Put and call options
Among the arbitrary trading strategy the one type which is a free lost is a ‘conversion’. In this arbitrary strategy it involves the buying stock, the call involve in the selling option and the put involve in the buying option these three occurs and have to be carried out in the market. The option made by the put and the call has to be same price and the money amount that which is received from the call of the selling must be made in such a way that this amount should be able to pay or in a position to buy the put option. So, this type of strategy is merely like mount of the money which is received after the call option of the selling is quite more than enough for buying the option in the put. The thing that is required for this strategy is that the difference of the option of the call price must be less than difference made between the option price and the price asks by the current stock. The price of the call option made by the bid-price of the put option is the price of the current stock-the price strike by the option. There is also an option of swing trading in the stock market.
The concept of buying and selling
There are different ways in which there ways are currently used to place order for this strategy. The strategy of the caller can also be used which covers all the strategy of the call which is done by triggering one option of the put with strategy of combo by triggering at least one stock, the best recommendation is just to leave this all till the date of the expired. And the traders can even close all these options just before two or one day of the expiry date which can be done by the selling as well as the buying. You should try to go for understanding terms like NSE, BSE, NASDAQ…etc.
This option trading and the strategy of the stock trading have got lots of advantages and some of the advantages are that it is a totally free of risk. The stock market price changes do not affect all this, even if it is high or low it will be still the same. Besides this great advantage, the other advantages which attract much more traders are that in this tragedy adding or multiply are possible by buying more contracts. Now on you will know the value of the money even if it is a single penny, even though if you find a single penny on the road side also you would like to pick up and save it. Whereas in stock market multiplying is possible when you buy more units or share. In the meantime there are lots of disadvantages also. The disadvantages are that there is very low profit. So, you have come to know about free money in stock market: Conversion.
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