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hi beers namaste in this video we will discuss how to draw the payoff drawings by the end of this video you will forget the full basics and will be in a position to read and understand any payoff diagram you come across so welcome to the world of get ready apart from the payoff diagram if you treat this as an interactive video I will be giving some pause before answers if you can answer before I do it shows how strong you are in basics ok lets start right this payoff diagrams are nothing but graphical representation of profits and losses for different expiry prices and for a given experiment time for example see this lets draw for normal equity market as a buyer with increase in price your profit increases right directly proportional increase and with fall in price your profit decreases or losses increases right same with futures long - in the same way if you are short in future or a seller in equities intraday with rise in price the loss increases and with fall in price the profit