PLEASE HELP-NEW TO Futures & Options

swagat86 · #11 11th June 2007, 08:27 PM

Quote:

Originally Posted by lsolanki

me too new to F&O
i want to know what exactly leverage is in futures.
suppose i have 10000 cash and want to trade in nifty futures can i do it?
how much margin is thr in ane scrip or nifty.
pls explain with a example

Sorry for late reply. the leverage depends very much on the broker. Like ICICI charges approx 54000 for one lot of futs.

Since u mentioned that ur new, just one small piece of advice. pls read details abt futures before u go into trade. Terms like MTM, Margin Call etc and their meaning and implication is very important to know. Or else ul burn ur hands.

thanks

lsolanki · #12 24th June 2007, 01:14 PM

can anebody explain what exactly is leverage with an example......how futures trading is done.........pls explain

loosingstreak · #13 24th June 2007, 02:02 PM

Quote:

Originally Posted by lsolanki

can anebody explain what exactly is leverage with an example......how futures trading is done.........pls explain

Thats pretty simple. Take for eg the nifty the min. lot size being 50 you get to trade 1 lot for a margin of say 10% of nifty spot.
So if you put up a margin of about 20k you get a leverage of about 200000 for 1 contract.

Buying and selling precedure is pretty much same as stocks.

caramel26 · #14 19th July 2007, 12:02 AM

hi
not sure whether this would be the correct place to ask these sort of question ?

Q1 > what is Futures & Options ?

Q2 > Can someone take Pain in explainig 1 example each (F & O) and explain how this work...?( if possible with 1 live example)

Q3> I hope i'am not asking too much for u punts?

Q4 > Minimum amt. req. to start trading in F & O?

thanks
sridhar

mdraafi · #15 2nd August 2007, 11:25 AM

Visit the web http://tradersedgeindia.com/beginners_guide_futures.htm

knarendra · #16 2nd August 2007, 03:35 PM

Dear sir,
I read in a book,a famous trader says about option,
Just buy call and buy puts, then count your profit.
What is the meaning?
Is it Arbitrage trading in Option?
Pl. explain me.

regards,
naren

musicjunkie · #17 2nd August 2007, 05:47 PM

Quote:

Originally Posted by caramel26

hi
not sure whether this would be the correct place to ask these sort of question ?

Q1 > what is Futures & Options ?

It is very complex to answer that but in one line they are derivative instruments which means their movement relies on the underliying. In simple terms the F&O market relies on the equity market for price direction. For now atleast stay away from options as they are decaying assests and are a bit more complex, our seniors can help you on that. The futures market basically gives you leverege, varies from stock but normally would be about 25% initial margin, so a 2% movement up will bring you a profit of 8% before brokerage.

[/quote]
Q4 > Minimum amt. req. to start trading in F & O??[/quote]

around 35,000 to 55,000

MusicJunkie

vijbala · #18 5th August 2007, 12:51 PM

Hello Caramel,
Trading in futures is easy and profitable. For example IFCI (lot size 7875) was trading at Rs56 on 2nd august and rose to 60 plus the next day. So a profit of Rs4 multiply 7875 equals Rs 31500 is the gross profit. Still need more explanation ? I can help

thimma · #19 5th August 2007, 03:11 PM

Quote:

Originally Posted by vijbala

Hello Caramel,
Trading in futures is easy and profitable. For example IFCI (lot size 7875) was trading at Rs56 on 2nd august and rose to 60 plus the next day. So a profit of Rs4 multiply 7875 equals Rs 31500 is the gross profit. Still need more explanation ? I can help

Similarly on between 26 and 27 July2007 when the market tanked CAIRN slipped from 160 to 142. So for the lot size of 2500 the loss is 45000. Futures is a double edged sword be very carefull while trading.

soody · #20 5th August 2007, 05:39 PM

Dont get carried away by huge lot sizes like IFCI etc. These are fundamentally weak stocks being played by some market movers. U saw profit booking by these players even before the correction really started. There is a huge risk of these stocks going down just like IDBI did before. So go for funda large cap stocks like RIL,SBI,TISCO,RCOM etc in FNO!

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