new to futures intraday trading

sumeetsj

Well-Known Member
#11
Ok correct me if i am understand it wrong.

So in other words, all you have to pay back is the total margin when u sell?

Example- My capital is 10,000 the margin given to me is 90,000 and stocks are worth 100,000. If the value of stocks increase to 110,000 and i sell it at that rate, i got to pay back 90,000 plus brokerage and keep the rest.
In another scenario if my stock value falls to 90,000, i have to pay back 90,000 plus brokerage and my capital of 10,000 is completely lost.
Have i got it right?

The transactions are cash settled. So you need not buy those many number of shares and pay the rest of the amount. Till the positions are open your margin which is roughly (25 to 30%) of the entire value of the transaction your margin will be blocked. So actually u need not pay or receive that much money. I think u should talk to someone about it and get the funda straight.
 
#12
Ok so I understand the leverage aspect of futures.

So can I analyze the chart of a stock, then forecast that it will go up and buy its futures? Does the ordinary stock chart correlate well to the futures of that stock and is it exactly the same?
 

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