Precautions for Clients Dealing in Options:-
We draw your attention towards the various circular issued by exchanges regarding precautions to be taken by client while dealing in securities market.
All clients are advised to trade in derivatives including options, only if they have adequate understanding of the product. Derivatives are complicated leveraged products with a potential for oversized gains or losses. Also, Options have complex nonlinear pay-offs. So it is very important to understand all the associated risks and returns while trading in these products.
In view of the same, we advise you to remain regularly caution and alert while trading and avoid practices like
a) Sharing of trading credentials – login id & passwords including OTP’s.
b) Trading in leveraged products like options without proper understanding, which could lead to losses
c) Writing/ selling options or trading in option strategies based on tips, without basic knowledge & understanding of the product and its risks
d) Dealing in unsolicited tips through Whatsapp, Telegram, YouTube, Facebook, SMS, calls, etc. e) Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.