Trading in Futures & Options has been increasing for a while now. Moreover, according to NSE data, most of the trading volume is contributed by Options Traders and of course NSE is the world’s largest trading derivative exchange.
As you know Dhan has come up with India’s first full-fledged Options Traders App, which is specially designed for Super Traders like you and, has many unique and industry-first features like Strategy based on Outlook, Pre-built strategy, Screener, OI & Volume analysis, Option Chain & Manage Your Open Positions. We are here with some more new features for Option Traders!
We know that a graphical representation is better understood and remembered by an individual. So keeping this in mind, introducing to you the Pay-off graph on the Dhan App.
What is a Payoff Graph?
In simple terms Payoff graph is the graphical representation of the payoff of an option.
They can also be referred to as the “risk graphs” which show your profit or loss on a graph.
How to use the Payoff graph?
Example: Buying a Call Option
In this example, the Payoff diagram of the Long Call Options strategy, it will be seen that if the underlying asset price is less than the strike price, the decision options holders lose money which is the equivalent of the premium value, but if the underlying asset price is over the strike price and continually increasing, the holders’ loss is decreasing until the underlying asset price reach the breakeven point, and since then the decision options holders make the most of their long call positions.
Let’s see how this looks on the Dhan App
The importance of pay-off graphs in options trading is well known. We want Dhan users to stay on top markets always. Live data and analytics play a crucial role in risk and money management.
On Dhan’s Pay-Off graphs, we provide you following data and information:
- Maximum Profit
- Maximum Loss
- Breakeven Price
- The current spot price of underlying
- Margin Needed to execute
Currently, we have come up with the first version of the pay-off graph on a single-option contract. We have plans to add more interesting functionality to view the pay-off graph of strategy and combined positions in the future.
Know more about Options Trading here, and you can download Dhan’s integrated Options Trading app from here.
We are sure you are enjoying the trading experience on Dhan (App, Web, and TradingView)
Enjoy the Dhan experience. As usual with Dhan, your suggestions and feedback are most welcome.