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The answer is returns over long periods. Kamal Kant Mishra, a New Delhi-based investor who buys such securities, says returns are attractive but risk is per cent. The word is patience. You have to negotiate since there is no fixed price," he says.

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Key Takeaways For a transaction to occur, there must be a buyer on one side and a seller on the other; even when prices are falling, there are buyers of the falling securities. A broker does not have to buy the stock you are trying to sell; a broker is there to act as an agent on behalf of the seller, finding someone to make the purchase. While brokers are there to facilitate trade, market makers take the opposite side of a trade and buy or sell; yet, market makers don't always offer the best prices. If there is more demand, buyers will bid more than the current price and, as a result, the price of the stock will rise.

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The strike price may be set by reference to the spot price market price of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. The seller has the corresponding obligation to fulfill the transaction i.

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