I'm new ,could u explain this?

I just opened demat ac. I'm interested to trade 1 lot of NIFTY and I want to square it off before each session. So what is this trading is called technically? What is the margin money required ? And If I can gain +10 points what is the profit amount ?

Pz note that I'm very much new and I'm unable to understand what My broker is saying.So if anyone explain me in little bit more explanatory manner will greatly appreciated.

thank you
skd

Margin money requirement depends on broker firm,and brokerage charge also varies from broker to broker

It is called as 'day trading' or 'intraday trading'.

One lot of NIFTY consist of 50 shares. Thus, contract value = 50 * NIFTY INDEX value.
So if NIFTY is at 5000, contract value = 50 * 5000 or Rs. 2.5 lacs.

Margin money for futures of index are around 10 to 15%, or approx 25-35 K depending upon your broker.

A gain of 10 points translated into gross profit of 500 for one lot of NIFTY.

Deduct the brokerage, service tax, security transaction tax, cess, etc. and workout your net profit.

Dear Bunny ,
thanks a lot.

So this is called nifty future intraday trading, right?

From my little knowledge from internet surfing what I know about future trading is "you've right to buy or sell the script before a specified date but you're not obliged ".


From above line, to initiate a trade I 've to mention a date ? But since I want to square off on each session is it necessary to mention ?

Also there are two options CALL/PUT.

So let's say I'm bullish for nifty that within couple of hours it will go up, So to buy it I've to mention "CALL" and if bearish then "PUT" .

Am I getting right ? Pz explain.

thank you once again.
skd.

As a new investor, don't try all these things. try to buy some blue chips on a long term basis and as u get experienced then try for intra-day, etc.watch the market for some time and then venture into nifty trading, etc.

"concerned to all well wisher seniors"

My dear friends,
I really appreciate your concerns for new investors.

My knowledge of share market to confined to vigorous surfing on nets and studing of charts for couple of months.what I found that stocks quite volatile and unpredictble in comparision to nifty.

That is why I was interested in nifty day trading ,opened a demat ac. But don't know much about how to initiate nifty one lot day trdading. And question is all about that .

So anyone who wish to guide plz guide me.

thank you
skd

You are confused and going too fast. Spend some time reading on derivative trading, or are u in a hurry to commit hara kiri I think not..

skd, don't depend on partial knowledge that you are getting thru few random questions.
Go systematically and get your basics right.

You can download the material from NSE site and read it to get complete picuture. http://www.nseindia.com/content/ncfm/DMDM.zip

Don't rush to trade. Market will always be there.. just make sure that your account remains there with sufficient fund. Without knowledge, u still might be able to hit few winning trades.. but believe me, in the long run (i.e. few weeks), you will learn your lesson in hard way. Don't take this easiliy cause the person who is buying /selling from you could be professional, fii, seasoned trader, who is waiting for some novice to take position against them.

Bunny has already answered your question. Regarding Call and Put options, you are right.
My suggestion will be to stay away from options for the time being. First learn how to read chart, how to decide the current trend - up/down/side and develop your profitable strategy to trade all 3 scenario.. Withoug this, you can't go far in option trading. Moreover option looses value everyday, unlike future or stock.. so chances are much high you might get caught on the wrong side.

All the best. Happy learning and trading.

thanks, I will keep it in mind.

skd.