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Can anyone suggest please?
| From : Tejinder Singh at 01:23 PM - Feb 27, 2010 ( ) |
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Thanks to all for their feedbacks, really appreciate this :)
Option there are two types one is CALL and other is PUT. CALL means going long. PUT means going short
In F&O there are 3 contracts u can trade the current contracts. There are index future and options, Stock future and options
Indices future trading
As you can do future trading on stocks likewise you can do trading on different indices like Nifty index, IT index, Auto index, Pharma index etc.
futures derivatives tradingFuture trading can be done on stocks as well as on Indices like IT index, Auto index, Pharma index etc.
Stock future trading -
Let’s first understand what the meaning of futures trading is. In simple language one future contract is group of stocks (one lot) which has to be bought with certain expiry period and has to be sold (squared off) within that expiry period.
Suppose if you buy futures of Wipro of one month expiry then you have to sell it within that one month period.Important - Future contract get expires at every last Thursday of every month.
If you buy October month expiry future contract then you have to sell it within last Thursday of October month. Likewise you can buy two months and three months expiry period future contract.
You can buy maximum of three month expiry period.
For example - suppose this is month of October then you have to buy till maximum month of December expiry and you have to sell it within last Thursday of December month. You can sell anytime between these periods.
For example Reliance Industries future lot size has 150 quantities of shares while a Tata Consultancy service has 250 shares.
In the same manner all futures have different lot sizes decided by SEBI (Securities Exchange Board of India).
The margin (in other words price of one lot size) varies on daily basis based on its stocks closing price.
Future trading can be done on selected stocks listed under Nifty and Jr. Nifty and not on all stocks.
The price of future contract is determined by its underlying stock.
Important - You can’t buy future contract of expiry period of not more than 3 months.
But on Nifty index contract or on other index contract you may see good trading volumes even on 3rd month expiry future also.
You can also buy and sell or sell and buy future contract on the same day of any expiry month. This is called as day trading or intraday in futures.
Brokerages offered for future trading are less as compared to stock delivery trading.
please go thoroughly Sh. Hasmukhlal Jain ji link http://www.mudraa.com/singlepost.php?messid=29123 and the following message all the best From : Hasmukhlal Jain at 11:58 AM - Jan 03, 2010 (55 days ago) ( Write Message to Hasmukhlal Jain ) Dear Friends, Those who are not well-literate with F&O or those who are confused with Derivatives may please refer to my free website www.vijaybharat.com and the name of the topic is "Understanding Derivatives". I am sure that this will help you a lot. - Hasmukhlal Jain
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