Some basic questions on Futures

A

arun_17

Member
#1
#1
Hi Friends !
I have some basic questions on Futures. I would like to know about where I can find the current margin requirements for futures .

And think that I am going to buy Unitech Futures for the month ended December . Imagine I am buying it today @ 34.50 . So the market lot for Unitech is 900 . So it means I am buying Rs.31,050 worth futures right ? And if Unitech's margin requirement is 10% then I have to pay only Rs.3,105 for one lot right . That also means if the Future gains 10% I will be doubling my money and if it loses 10% I would lose my entire amount right ?

I would also like to know what is the minimum age for trading futures and is it enough if i have trading account or must I have someother account also. And also what is the Tick Value for the Nifty and the Sensex .

I am a newbie to the market and I would love it if you answered these basic questions for me ! Thank you ! :)

Greetings From Erode,
Arun.
 
Last edited:
bandlab2

bandlab2

Well-Known Member
#2
#2
If you are a newbie to the market, pl stay away from futures market. futures mkt needs very good money management and need to take swift actions even resulting in huge loss

do it on paper for atleast 3 months before all your silly mistakes are covered. margin requirement depends on stock, broker and market volatility. check with your broker, they will have a list. normal trading accout with Futures & Options is enuf. you will need to sign sepeate agreement for FnO since they give margin to you, so they need to protect themselves
 
F

fast_rizwaan

Active Member
#3
#3
arun_17 said:
Hi Friends !
I have some basic questions on Futures. I would like to know about where I can find the current margin requirements for futures .

And think that I am going to buy Unitech Futures for the month ended December . Imagine I am buying it today @ 34.50 . So the market lot for Unitech is 900 . So it means I am buying Rs.31,050 worth futures right ? And if Unitech's margin requirement is 10% then I have to pay only Rs.3,105 for one lot right . That also means if the Future gains 10% I will be doubling my money and if it loses 10% I would lose my entire amount right ?

I would also like to know what is the minimum age for trading futures and is it enough if i have trading account or must I have someother account also. And also what is the Tick Value for the Nifty and the Sensex .

I am a newbie to the market and I would love it if you answered these basic questions for me ! Thank you ! :)

Greetings From Erode,
Arun.
Click to expand...
With futures, you'll lose more that what you have in your account. so, in unitech's case if it goes below your margin amount, until the futures value is -50% your position will be held by the broker, on 50% or above loss,your position will be squared off and you'll be asked to pay the remaining losses.

Minimum age is Adulthood. technically 18 years (for being responsible for your own actions)

If you have One account that is enough.

5paise is the minimum tick value of nifty futures. sensex is not tradeable.
 
F

fast_rizwaan

Active Member
#4
#4
use futures only, when you have 100% money and to save brokerage on delivery based transactions for swing trading, or to have a short-view on the scrip, that it may go down.
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
goldenedge Here are the basic questions you need to ask yourself before opening a trade. Trading Psychology 4
M Stock Market Courses in Delhi - Basic Trading Questions? General Trading & Investing Chat 2
patrader Some basic questions about Ami AmiBroker 7
P Basic questions on demat acc & no. of shares Beginners Guide 8
H Few basic questions on commodities . seniors kindly guide Commodities 11

Similar threads