How to trade in nse futures and options
It's an agreement between two parties either to buy or sell an asset at a certain time within the contract period on or before the contract period. Futures have contract specification like expiry date, trading cycle 1 month contract, 2 month contract, and 3 months contract , lot size etc.
Learn to buy and sell Futures Contract in BSE, NSE, MCX, NCDEX & MCX-SX
Some futures are settled in cash and some are physically settled. If you are in loss and if you are correct about your prediction roll it over to next month contract. If you sell the contract then you lose 10, rupees i. To avoid loss, you sell the current contract and buy buy the next month contract at current price i. Even though our gold and silver futures trading session ends at Indian midnight time, trading of gold and silver continue to trade round the clock in international market.
The price movements in international markets will be reflected on Indian markets mcx, ncdex when it opens up next morning. If you have left any un-winded positions, you may wake up to see your huge loss or huge profits if you are very lucky depending upon the International price movements.
Hence, always you must trade with strict stop loss since I have seen investors losing more than 30, rupees on a silver single lot in mcx due to international movements within a night. We have given examples on stock futures, index futures, commodity futures and currency futures below. Instead of buying stocks and holding them in your DEMAT account, you can buy stock futures.
To buy shares of Andhra Bank price is around rupees in STOCK CASH market, you need "4 lakh rupees" and you can buy the same shares at 68, rupees in futures market.
After buying in the futures market, hold it for some time and sell later within the life of the contract. If Andhra Bank price goes down, then you need sufficient amount to hold Andhra Bank Futures. Mark to Market MTM margin is a term refers to the profit or loss that you made on a particular future.
Indian Stock Index Futures Options Trading Investing Stocks Future Option India
MTM is rupees. MTM is 20, rupees. So the margin amount 68, rupees that you invested will become 64, in the first scenario and 44, in the second scenario. So you broker will request you to credit more money into your account to keep the required margin. If share value increases, then, you can request the broker to pay some amount to you. With minimum investment, you get huge profits.
NIFTY - Expiry Date: If you want to make profits on gold, either you can buy physically 1 kilogram of gold you need 28 lakhs , and keep it safely for some time and sell it later.
Or you can buy the same kilogram of gold in futures market with a margin of 1, 20, rupees in mcx and sell it when the prices go up.
If the gold price goes down, you need sufficient amount for MTM mark to market to hold your gold.
3 Easy Steps to trade in F&O (Equity Future Derivatives) at BSE, NSE, MCX
If you buy GOLD, then lot size is With less amount of money, you get profits. Let us assume that for 40 rupees, you can buy 1 dollar.
So to buy US dollars, you need 40, rupees. After 1 year, 1 USD may be 50 rupees and you get a profit of 10 rupees per US dollar.
For US Dollars, you get profit of 10, rupees. APPLY FOR FREE TRIAL. How to buy and sell Stock Futures in NSE or BSE in online trading? How to buy and sell NSE Index Futures in online trading? Your loss is dependent on the NIFTY movement. When you hold it until the expiry date and you may get profit or loss. You can sell it also whenever you think on before the expiry date 3. How to buy and sell Currency futures in MCX-SX in online trading? Stock Options Commodity Tips.
Quick Links Trading Intro: Online Trading Intro eTrading Indian Securities Market Financial Instruments Derivatives IPO: IPO basics, price range, tick size with examples Futures: Introduction to Options How to BUY AND SELL OR SELL AND BUY OPTIONS in BSE and NSE? Comparision between stock delivery, stock intraday, stock future and stock options Index: Online Trading in BSE, NSE Index Futures and options with examples Commodity: Introduction to Foreign Exchange FOREX Currency Forward Contract Lot Size, Tick Size, Margin for USDINR, JPYINR, GBPINR, EURINR Profit Loss Calculation for USDINR, JPYINR, GBPINR, EURINR Comparision between USDINR, JPYINR, GBPINR, EURINR History Data: FAQ - Account Opening FAQ - Trading FAQ - Problems.