What does OI mean in STOCK EXCHANGE

Option investment is a way to buy and sell contracts consisting of stocks, bonds, indexes and other financial instruments. These contracts give the investor the right, but not the obligation, to buy or sell the underlying asset at a specified price before a predetermined date.

Options are quite risky as they require investors to accurately predict the direction and magnitude of price movements in a short period of time. The risk comes from leverage, which can cause your profits to be magnified if you make accurate predictions, but also cause large losses if you make inaccurate predictions.

There are two main types of options for investment - call options and put options. A call option gives the investor the right to buy an underlying asset at a predetermined price on or before a certain date; whereas a put option gives the investor the right to sell an underlying asset at a predetermined price on or before a certain date.

Potential returns on option investments can be calculated using mathematical formulas known as Black-Scholes equations. These equations take into account factors such as time until expiration, strike prices, volatility and spot prices in order to determine potential returns on an option contract.

When trading options it is important to have a well-defined strategy in place prior to entering into any positions in order minimize risk exposure while maximizing potential profits. Common strategies include covered calls, bull spreads, bear spreads and straddles. It is important that investors familiarize themselves with these strategies prior to entering any positions.

Fees associated with option trading vary depending on brokerages and individual investments; however, typically investors may incur commission fees whenever entering or exiting positions in addition to delivery fees when taking physical delivery of an asset from their broker. It is important that all associated fees be considered prior to investing in order to maximize profits and limit losses due to excessive costs.

Some common mistakes made by beginner investors when engaging in option trading include underestimating market volatility which can quickly erode away potential profits; failing to properly manage risk exposure by failing pay attention leverage or trade size; or getting caught up in emotions instead of basing decisions off of facts/data points.

Yes, there are specific tax implications that must be taken into account depending upon an investor’s country of residence as well as where transactions occur (i.e capital gains taxes). It is important that investors becomes familiar with their local regulations around taxation as different countries have different rates for income derived from investments.