HOW to get your shares insured…!!!

Dear Friends!!
In my previous article, we talk about the ‘Investor protection’ in the highly volatile MARKET where one can get the “Insurance of Shares” to safeguard their investments which directly invest into the MARKET but the question is how one should approach to get it from and where, please see the answer below –
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Let's now cover some of the detail -
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

The ‘Insurance Contract’ that we've been talking about here is nothing but to buy a ‘PUT OPTION’ roofed under the ‘Derivatives’ segment in the ‘Financial Markets’. An option is simply a promise and in this case we are buying a promise that someone else has made. You don't need to worry about finding the person or setting the premiums because the stock exchange does all that for you.

The ‘PUT Option’ we are buying has some terms to define exactly which option it is, because major stocks have heaps of option contracts available.

Thus the primary aim of the investors should be to protect their investments by using the combination of these products and also make a ‘perfect hedge’ against the overall risk.

*Also to note to our investors that these are very ‘sophisticated instruments’ & ‘high leveraged’ product meant for professional brokers and hedge funds to safeguard their investments hence small investors should be very cautious while using these products and it’s recommended to take professional advice in respect of the same before proceed further but on the same note it's an outstanding product, to make a good amount of profits in the MARKET, if it's cleverly used.

Take the time to get educated about Insuring your Shares as it's a valuable investing tool. But there's more to know before you start doing it.

“If you want to be rich, you need to be a business owner and an investor.” – Rich Dad