Understanding the Master Candle Concept

Option trading is one of the most exciting and flexible segments of the financial markets. It allows traders to profit not only when prices rise, but also when they fall — and even when they stay relatively stable. In simple terms, an option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified period. In India, options are primarily traded on stock indices (like NIFTY 50 or BANK NIFTY) and individual stocks on exchanges like the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

Option Trading in India – Regulations

Option trading in India is regulated by the Securities and Exchange Board of India (SEBI).
Contracts are standardized and traded through exchanges like NSE and BSE.
All participants must trade through SEBI-registered brokers, and margins are monitored daily to control risk.