London, 27 November 2013 MNI INDIA BUSINESS SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME. MNI India Business Indicator Increased to 64.6 in November from 59.8 in October. Production and New Orders Recover. Thirteen out of the 15 current conditions indicators included in the report increased in November. Employment was the only indicator to decline and Inventories remained unchanged compared with October.
London, 27 November 2013 MNI INDIA BUSINESS SENTIMENT EMBARGOED UNTIL 9.45 A.M. NEW DELHI TIME. MNI India Business Indicator Increased to 64.6 in November from 59.8 in October. Production and New Orders Recover. Thirteen out of the 15 current conditions indicators included in the report increased in November. Employment was the only indicator to decline and Inventories remained unchanged compared with October.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
The Union Budget presented by Finance Minister Mr. Arun Jaitley, with the muted expectation, it was a good budget considering the local and global financial constraints. The budget stuck to the path of fiscal consolidation. The Government targets to narrow the central fiscal deficit to 3.5% in 2016-17, after having comfortably met its 3.9% target for 2015-16.
The Indian economy was facing Agrarian distress for the past 3 years. This was primarily because the Minimum Support Prices were raised by less than 5% every year in the backdrop of MSP increases between 12% -16% between 2005 and 2013. This was the primary reason for inflation being in double digits since 2009. By keeping the MSP increases below 5% the food prices continue to be under control and the CPI has remained below the RBI’s threshold of 6%. On this backdrop, the government’s decision on focusing on social sector spending was welcome.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
1.Increase In NPA
Graph Showing NPA
Lessons From NPA Crisis
Recommendations By Mr. Raghuram Rajan
P.J Nayak Committee Recommendations
Roads Ahead
2. Increase In Fiscal Deficit
Graph Showing Fiscal Deficit
GOVERNMENT MEASURES
3. Low Level Of Technology
Reasons For Low Level Of Technology
Achievements
Government Measures
4. Dependency Of India On Oil
Dependency On Oil Imports
Current Challenges
Roads Ahead
5. Low Level Of Demand
Reasons
Government Measures
Triggers to watch out for -
1. General Election Outcome
2. Key Reforms Implemented over 5 years
3. Analysis of market returns post-election
4. High-frequency indicators
5. FPI flows trend
A detailed insight into a monthly equity and fixed income market outlook.
Read the full document to know more.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
The Union Budget presented by Finance Minister Mr. Arun Jaitley, with the muted expectation, it was a good budget considering the local and global financial constraints. The budget stuck to the path of fiscal consolidation. The Government targets to narrow the central fiscal deficit to 3.5% in 2016-17, after having comfortably met its 3.9% target for 2015-16.
The Indian economy was facing Agrarian distress for the past 3 years. This was primarily because the Minimum Support Prices were raised by less than 5% every year in the backdrop of MSP increases between 12% -16% between 2005 and 2013. This was the primary reason for inflation being in double digits since 2009. By keeping the MSP increases below 5% the food prices continue to be under control and the CPI has remained below the RBI’s threshold of 6%. On this backdrop, the government’s decision on focusing on social sector spending was welcome.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
1.Increase In NPA
Graph Showing NPA
Lessons From NPA Crisis
Recommendations By Mr. Raghuram Rajan
P.J Nayak Committee Recommendations
Roads Ahead
2. Increase In Fiscal Deficit
Graph Showing Fiscal Deficit
GOVERNMENT MEASURES
3. Low Level Of Technology
Reasons For Low Level Of Technology
Achievements
Government Measures
4. Dependency Of India On Oil
Dependency On Oil Imports
Current Challenges
Roads Ahead
5. Low Level Of Demand
Reasons
Government Measures
Triggers to watch out for -
1. General Election Outcome
2. Key Reforms Implemented over 5 years
3. Analysis of market returns post-election
4. High-frequency indicators
5. FPI flows trend
A detailed insight into a monthly equity and fixed income market outlook.
Read the full document to know more.
How To Avoid Losing Money In The Stock MarketInvestingTips
How To Avoid Losing Money In The Stock Market
http://www.profitableinvestingtips.com/stock-investing/how-to-avoid-losing-money-in-the-stock-market
A common expression years ago, was playing the stock market. The expression came from the fact that many thought of stock investing as gambling on whether stocks would go up or down. Traders listened for stock tips with fond hopes of getting into a stock before it ran up in price and out of a stock before it went bust. After the stock market crash that ushered in the Great Depression, Benjamin Graham taught how to avoid losing money in the stock market by learning to calculate the intrinsic value of a given stock. What is intrinsic stock value? The intrinsic value of a stock is generally referred to as the forward looking value of the stock discounted to present circumstances. Mr. Graham devised a formula so that investors could make a rational decision about whether or not to buy or sell a stock. How to avoid losing money in the stock market is to use tools like the Graham intrinsic value formula and your own good common sense when investing in stocks.
Intrinsic Stock Value
Here is a thumbnail view of the Graham formula for calculating intrinsic stock value in 1962 and modified in 1974. The 1974 version considers the following:
• Earnings per share, EPS, for the preceding twelve months
• A constant of 8.5 representing an expected price to earnings ratio, P/E ratio, for a company that is not growing
• An estimate of long term growth, five years = g
• A constant of 4.4 which was the average yield of high grade corporate bonds in the early 1960 decade
• The current yield of AAA corporate bonds = Y
• Where V = intrinsic value
The formula is as follows:
V = (EPS x (8.5 + 2g) x 4.4)/Y
The point of this formula is to calculate the RGV or Relative Graham Value. Do the calculation to find V. Then divide V by the current stock price. This gives you the RGV.
By www.ProfitableInvestingTips.com
What is Intrinsic Stock Value?
In the aftermath of the stock market crash of 1929 in the early days of the Great Depression Benjamin Graham introduced the concept of value investing. No longer would those buying and selling stocks need to act like they were at the casino. With the concepts of intrinsic value and margin of safety Graham taught investors a rational means of investing in stocks. With this in mind just what is intrinsic stock value? And how does this concept help with profitable stock investing?
What Is Intrinsic Stock Value?
The dictionary definition of intrinsic stock value is its fundamental value. It is obtained by adding up predicted future income of a stock and subtracting current price. It can also be seen as actual value of an equity versus its book value or market value. The concept of fundamental analysis of equities evolved from this concept. Using fundamental analysis the intrinsic value of a stock is the expected company cash flow discounted to current dollars. It is a discounted cash flow valuation. An inherent weakness in this concept is that too often the medium and long term prospects of a company and its stock price are not clear. So, what is intrinsic stock value of a company if the future is uncertain? The ability to see into the future to see how well a company will manage its assets, products, costs, R&D, and marketing is of utmost importance in calculating intrinsic stock value as a means of deciding whether or not to purchase a stock.
What is Intrinsic Stock Value as a Formula?
Mr. Graham presented investors with a formula for calculating intrinsic stock value in 1962 and modified it in 1974. The 1974 version considers the following:
• Earnings per share, EPS, for the preceding twelve months
• A constant of 8.5 representing an expected price to earnings ratio, P/E ratio, for a company that is not growing
• An estimate of long term growth, five years = g
• A constant of 4.4 which was the average yield of high grade corporate bonds in the early 1960 decade
• The current yield of AAA corporate bonds = Y
• Where V = intrinsic value
The formula is as follows:
V = (EPS x (8.5 + 2g) x 4.4)/Y
The way the investors were encouraged to use intrinsic value was to derive what is referred to as a Relative Graham Value, RGV. This is to divide the calculated intrinsic value of the stock by its current price. If the result, the RGV, is less than one the stock is overvalued and a bad investment and if the ratio is above one it is undervalued and may be a good investment.
What is Intrinsic Stock Value as an Investing Tool?
There are a couple of difficulties in using the simple calculation above to determine the forward looking earnings of a stock and therefore its intrinsic value. First of all the formula does not account for inflation. Thus one could use the formula and end up with a stock valued higher in dollars but in dollars that are inflated.
Equity View:
Markets are moving into earnings season and initial results of few corporate entities seem good enough,
starting with Indusind Bank followed by Infosys. The numbers of these companies were expected to come
out well thus this outcome is not surprising from sectors like Private Sector Banks, IT, FMCG and Pharma
which are expected to perform well. There are few sectors like Capital Goods, Public Sector Banks and old
Infra Companies which can show subdued results. We expect domestic factors like government policies
to drive the market in absence of global cues. IIP data is set to come out today and is expected to be flat;
Inflation is also expected to be higher due to base effect.
Real estate markets have a cycle of around 5 – 7 years thus an off-take seems distant, however buying
could initiate after 2 – 3 years. A rate cut acts as a catalyst but it cannot help in a sudden pick-up of
demand.
There is always a trend and a counter trend in the movement of an asset class. We need to see the long
term trend. In commodities there is bearish long term trend so counter trend is bullish and thus,
currently we are seeing a counter trend in this asset. Similarly, if we have a bullish long term trend for
equity markets then from time to time there would be correction which is also happening now and this is
known as counter trend. The incremental savings of the government can either be used in the form of an
investment, subsidies or 7th Pay commission arrears. This definitely leads to correction in equity markets
but it doesn’t lead to bearish phase. If everyone is hopeful about the turnaround of Indian story and
economic revival then no one exits completely from the stock markets. Larger expectations are that
investments will certainly pick up and we all are hopeful about it.
News:
DOMESTIC MACRO:
Indirect tax collection rose 35.8% to over Rs. 3.24 lakh crore in the first half of the current fiscal.
Indirect tax collection in the period from April to September in the last fiscal stood at about Rs.
2.38 lakh crore.
The International Monetary Fund (IMF) in its latest World Economic Outlook has lowered India’s
growth forecast for FY16 to 7.3% from its July forecast of 7.5%. Growth is expected to bounce back
to 7.5% in 2016-17 on the back of reforms, pick-up in investments and lower commodity prices.
The Reserve Bank of India (RBI) will be increasing the investment limit for Foreign Portfolio
Investors (FPIs) in Government Securities to Rs. 1,79,500 crore by January 1 from the existing Rs.
1,53,500 crore.
The Cabinet approves a Railway Ministry proposal to pay bonus equivalent to 78 days’ pay, with a wage
ceiling of Rs 3500 a month.
• Owing to growth concerns, Global Central Banks are reducing interest rates. The Reserve Bank of India
(RBI) too is expected to follow suits and may deliver 25-50 bps rate cut
• Central Banks are expected to continue with the loose monetary policy
• Food inflation is beginning to see some moderation although CPI Inflation continues to remain above
RBI‟s comfort zone. RBI‟s operation twist and LTRO too bodes well for the bond markets
• In light of the above factors, we have added duration across our portfolios as we have become positive
on the duration segment in the near term
• We continue to believe that the best strategy would be to create portfolio maturity in the range of 2-5
years
• We also continue to remain positive on the accrual space, as the divergence between Gsec/AAA & AA/A
yields persist.
Equity View:
The quarterly results which are coming out are in line with the expectations as we are now heading
towards stickier end of the result season approaching Diwali. Companies who have not performed well
may declare results between 7th Nov – 15th Nov, as the markets are on a holiday, so their results go
unnoticed. People must keep a close eye on how sectors like Infra, Capital Goods, Manufacturing and
Public Sector Banks will perform which will set the tone of the market.
In PSU banks, a lot of assets were restructured proactively in 2013 when new chairman’s of different PSU
banks took over. When banks restructure the assets once, then you cannot restructure again within 18
months. Thus, if that particular asset doesn’t become standard and start servicing interest and principal
then it has to be termed as NPA (Non Performing Asset). The problem is that restructured assets are not
being standard so it is better to stay away from PSU banks.
On the global front, Chinese central bank has cut their interest rate and European central bank has kept
interest rate at a very low level making things difficult for US Fed to take any action in December.
Inflation is low in US but if adjusted for food and energy prices then it is closer to US Fed’s target of 2%.
Unemployment rate of 5.1% is also near to US Fed’s target. So if they consider sentiments of Wall Street
then it might be a very difficult decision to make in December.
The recent Indian IIP numbers are good but we can see 3rd Quarter as a good one because festivals like
Dusshera and Diwali are little late as compared to previous year. Government may have a shortfall of
around 50,000 crore in tax collections and 30,000 crore in disinvestment plan so, 80,000 crore shortfall
means 0.6% of GDP. This may lead to cut down in capital expenditure.
Telecom sector typically is a value destroyer; it was a value creator till 2009 due to lack of proper
government policies. Since the scandal broke out, now major expenditure for telecom companies is
buying of spectrum. If a telecom company is having capex of 100 crore then entire 100 crore goes into
acquisition of spectrum and equipment cost is huge in this field. We also have to keep in mind that
equipment is suppose to be depreciate very fast because of obsolesce of technology. Hence, considering
all factors, return on capital employed in this sector is below 10%.
News:
DOMESTIC MACRO:
World Bank predicts that remittances to India will increase by 2.5% this year.
Foreign investors have pumped in over Rs 19,000 crore in the Indian capital markets in October so far - the
highest level in six months – backed by a rate cut by Reserve Bank of India (RBI) and positive macro
numbers.
Indians invested nearly $2 billion in the Dubai's real estate during the first half of this year.
2. What is fundamental Analysis?
Its consists of three Aspects
1)Economic Analysis
2) Industry Analysis
3)Company Analysis
Its is also knows as E.I.C analysis
3. Its is a study which answers the question ‘which shares to
buy”
It is based on the study of the fundamental parameters of the
company like profits, operating income, EPS , PE ratio, debt
equity ratio, order book etc
What is fundamental Analysis?
4. Gross Domestic Product
GDP is the market value of all good and services produced
within India
It simply shows the economic progress made by the country
in a year.
Most important indicator for the investment and selection of
country
FII follows this data most closely
5. GDP Growth Rate
GDP shows country’s economic progress
GDP data comes every quarter
In 2008 during world recession the world GDP was -1.2%
while India grew at 5.3%
The data shows how the country is progressing and key
factor for capital flows
Today our GDP is below 5% which is worrying Factor
6. GDP DATA
From 1999 to 2008 world GDP grew only 2.9%
US contributed 24.3% in 2010 from 29.8% in 1999 to
world GDP
India contributed only 1.6% in 1999 to 2.3% in 2010 of
world GDP
7. Composition of Indian GDP
Service sector has 55% contribution
Agriculture has 18%
Industries account for 26%
Agriculture though is lowest but provides employment to
62% of population directly or indirectly
Indian GDP can grow at 9% only if Agriculture grows at 4%
8. World GDP Composition
US , UK, Japan, Germany, France and Italy are service
oriented economies
They all have more than 80% contribution from services
sector
9. 3 Key Parameters
70% of working population below 35% years of age
Out of total production we consume 86% and export only
14%
Our saving rate is 37% highest in (world Average 24%)
Indian produces highest number of English speaking
graduates
USA consumes world 40% produces
10. Population is our strength
US, china & Japan suffering from ageing population.
In 2020 India will have 147 million people in working group
In 2020 China working population will reduce by 50 million
11. Causes of inflation
There are 2 main causes of inflation
1. excessive money supply
2. Demand/supply mismatch
Indian economy has actual problem of demand supply on
agriculture side
Black marketing and hoarding results in rise of food grain
prices
12. Data of Inflation
Inflation is calculated by two ways
1. CPI (consumer price Index Method)
2.WPI (wholesale price Index Method)
Indian Government declares data by WPI method
CPI always higher that WPI
13. Deflation
Deflation is a situation where the prices are very low but
then also there is no demand for goods & services
In 2008 there was fear that deflation would set in India
But that would never occur due to huge middle class
population
They always buy when prices are low
14. Inflation & Interest rates
Continuous price rise is called as Inflation
High Inflation leads to high Interest rates
High interest leads to low demand as cost of capital goes up
Low demand results in to low consumption
Low consumption results in to low GDP growth
Low GDP growth means stock market down
15. World interest Rates
USA 0.25%
Japan 0%
Bank of England 1%
Europe 1%
Australia 2%
China 3.3%
India average 9 to 10%
16. Capital Flows
FII Borrow money from these cheap markets
They invest in to emerging countries like India, brazil,Russia
& china (BRIC)
India most Favourite for FII’s
18. IIP Data
IIP Data Stands for Index for Industrial Production
This shows the Industrial production Data
September IIP data Comes 2%
Nov 2010 IIP came 10.8% which was very good indicator
High data shows high demand
Low data show that manufacturing is less
In foreign countries the same Indicator is called as PMI
Purchaser manager Index
Reading of more than 50 shows that Economy is expanding
Reading of less than 50 shows that Economy is contracting
Currently Indian PMI Reading is at 47
19. Industry Life Cycle
3 main stages of Industry Life Cycle
Pioneering Stage
Expansion Stage
Maturity Stage
20. Valuation Ratios(Price Earning Ratio)
Two version of Price/Earnings
Leading P/E= Market price per share
Forcasted EPS over next 12 months
Trailing P/E= Market price per share
EPS over pervious 12 months
Can also be calculated as
PE= Current Market Capitalization
Net Income Attributable to shareholders
22. Technical Analysis: (TA)
“is a financial term used to denote a security analysis
discipline for forecasting the direction of prices through
the study of past market data, primarily price and
volume”
23. Share Price
Price is a consensus between a buyer and a Seller As
there is always a contradictory view in the market
Important Price Fields:-
Open
High
Low
Close
24. Types of charts
• Line charts – Only price field can
be used, preferably close
Bar charts –difficult to
understand and interpret when
continuous in series
29. ACTIVE COMMODITIES
5 Products Account for more then 80% of the–MCX volume
I,e Gold28%, Silver17%, Crude22%Copper15%,
NGas6%, Others12%,
30. Delivery Requirements……..
Open a Commodity demat A/cin NSDL &CDSL
Sales Tax VAT TIN Norequired for that place which you wish
to take delivery, or that location which you have received the
deliveryfrom the exchange.
If youdon't have theSales Tax VAT TIN No,then you can
appoint an agent(agent details required) I.e..Name of agent, Sales
Tax VAT TIN Noof agent , Address & Telephone no of agent.
( You can also appoint to SHAREKHAN as a agent for taking the
delivery inGold & Silver)
Purely a credit balancein ledger at the time of marking delivery.
31. Forward Markets Commission (FMC) headquartered at Mumbai,
is a regulatory authority which is overseen by the Ministry of
Finance, Govt. of India. It is a statutory body set up in 1953 under
the Forward Contracts (Regulation) Act, 1952.
"The Act provides that the Commission shall consist of not less
than two but not exceeding four members appointed by the
Central Government out of them being nominated by the
Central.......
32. How to open DE-MAT and Trading
account
Individual,Patnership firm,HUF, a Body Corporate or any legal
entity under the provision of The patnership act of
1932/companies Act,1956. Can open demat account.
pan card,bank details,cancel cheque and address proof & his or
her Passport size Photograph etc.
Above entity can Open Trading account with above account only
Minor Cannot open Trading account.
Trading account is required to do Transaction on exchanges like
Bse, Nse & other Regional for buying & selling of shares
33. Benefits of Opening a Demat
Account
Easy and convenient way to hold securities
Immediate transfer of securities
No stamp duty on transfer of securities
Safer than paper-shares (earlier risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc. are mostly eliminated)
Reduced paperwork for transfer of securities
Reduced transaction cost
No "odd lot" problem: even one share can be sold
Change in address recorded with a DP gets registered with all companies in which
investor holds securities eliminating the need to correspond with each of them
separately.
Transmission of securities is done by DP, eliminating the need for notifying companies.
Automatic credit into demat account for shares arising out of bonus/split,
consolidation/merger, etc.
A single demat account can hold investments in both equity and debt instruments.
Traders can work from anywhere (e.g. even from home).
34. How to buy, Sell & Use Stoploss
29/11/2013 12:39:49 : Trade Confirmation : Sharekhan Order ID - 397055024 Exchange Order
ID - 2013112902701611 Exchange DateTime - 29/11/2013 12:39:50 BOUGHT against
ADANIPORTS 100 out of 100 at Rs.159 Amount Rs.15900 Exchange Trade No.- 1010205 for
Customer ID - 402269 S2k ID - W414156, Name - PAWAN KUMAR
29/11/2013 12:50:07 : Trade Confirmation : Sharekhan Order ID - 397059523 Exchange Order ID -
2013112935297529 Exchange DateTime - 29/11/2013 12:50:07 SOLD against KTKBANK 142 out of
500 at Rs.102.8 Amount Rs.14597.6 Exchange Trade No.- 34099049 for Customer ID - 1509054 S2k
ID - 1509054, Name - MAKARAND
29/11/2013 09:15:56 : Trade Confirmation : Sharekhan Order ID - 396909024 Exchange Order ID -
2013112900085284 Exchange DateTime - 29/11/2013 09:15:56 BOUGHT against ALOKTEXT 50 out
of 50 at Rs.7.75 Amount Rs.387.5 Exchange Trade No.- 12652 for Customer ID - 1461673 S2k ID -
1461673, Name - ABHIJEETKUMAR .
29/11/2013 13:55:22 : New Order Confirmation : Your request to place Sharekhan Order ID -
397087296 Exchange Order ID - 2013112903432347 Exchange DateTime - 29/11/2013 13:55:24 NEW
SELL 50 ALOKTEXT at Rs.7.3 SLTRGR Price Rs.7.5 has been CONFIRMED by the Exchange - NSE
for Customer ID - 1461673, S2k ID - 1461673, Name - ABHIJEETKUMAR M MURKUMBI
35. Derivatives-Future & option
Future:-A future Contract is an Agreement between two parties
to buy & sell an asset at a certain time in the future at certain
price. Future contracts are special types of forward contracts in
the sense that former are standardized exchange Traded contracts.
Options are of two types:- Calls & puts. Calls give buyer the right
but not the obligation to buy a given quantity of the underlying
Asset, at the given price on or before a given future date. Puts
gives the seller the right but not the obligation to ell a given
quantity of underlying Asset at a given price on or before given
future date.
36. Margin is Required to Trade in Future contract to buy or sell
future contract , This is decided by Exchange & it may change on
daily basis, it depend on the Volatility of the stock or Market.
To Buy Options I,e Call or Put you need to pay premium
upfront . Options buying is less risky compare to selling of
Option, as Your Risk is only Confine to your premium you paid
upfront.
To sell Options I,e Call or put you need to pay Margin as the risk
in this case is Unlimited
