Can we go for Nifty Long and Nifty Short at the same time in FUTURES?

Hi All,

I am new to trading and i am trying to learn some basic fundamentals of FNO. I have a simple query (simple for all seniors in this group)...

Is it possible for us to go for a LONG as well as SHORT in Futures trading? I Know we could do a CE and PE in Options.. Not sure if we have something in Futures as well.

2. Do we have any software/excel tools providing some details about FNO? Similar to spread sheet where we could download Live NSE feed, etc.

Your suggestions/recommendations are always helpful.

Thanks,

Ananth :clap:

Yes, you can!!!! But it has to be in different months contracts: At present you shall have to do it in April and May contracts. You can take Long and Short, contra positions in NF using different expiries.

In Options , you are correct that you can have CE and PE to take long short position

BUT
You cannot have Long and Short position at the same time in the same contract : You can either be long in say : Nifty 3200 strike CE April contract or short in this contract.... you cannot have both the positions in the same contract.

Hi,

Thanks for your reply. That gets me to another question..

Suppose i have a SHORT for April and if i go for a LONG in May and assuming market rises steeply in next 2 weeks, can i book profit and come out of the LONG in april itself?

Ananth

bro ananth read ur question again u r short in april and if mkt rise u will b in loss and hav to book loss but u can book profit in may future

Hi Praveen,

Yep. You are right... i will change the question a bit.

Say i book profit in my SHORT for april (today itself since the market is down). and if i think market might shoot up once again, i shall go for MAY LONG.

Suppose market recovers today itself and ends @ 3300 (over optimistic ) can i book profit in my LONG for MAY today itself??

Hope i am clear this time around.

Thanks,
Ananth

ananth

if market rises steeply ...your may future would be in profit whereas april would be in loss...of course you can cover your may futures any time in profit leaving april futures open.

hope this explains

Ananth, you can very well close your profitable Long position of MAY contract.
But that will leave April position in open loss (no more hedged here).
And what happens if mkt continue to go higher ? Your April position continue to get in further loss and there is no protection available..

I will prefer to hedge the position using options, so that if MAY call gains, then I can book partial profit on already ITM call, and buy another call to protect the position for further rise.
Thats is the flexibility we get from different Options strike prices and expiry months.
IMO, futures are good when you have directional view on the market. It is difficult to get profitable non-directional strategy from futures.

Happy Trading.

I recommend that you read some basic material on FnO. Here is a link to a Step by Step guide, written in easy to understand language. If interested download and read :

http://tinyurl.com/czz7uk

Chha gaye Guru:clap:
aaj to tumhaari jabaan par saraswati maujud thi bhai
3300 ko chhodo 3350 bhi gayaa :rofl:
yes u can book ur profit even after every 5 mnt but brokerage u hav to pay watever ur broker decided for u
I am requesting u again dont play gamble first learn n then go for real money as even gamblers have there rules
Pathan sitting on the top of the mountain and studying.
When a person asked what he was doing?
He replied, Oye! Higher studies yaar.

Well said


i hope till now u got the solution
but i would request/suggest/advice u to no to do it
coz it maybe profitable at times
but u never know
if u have ur bad times going u may even need to close ur account forever
if u playing somethin like this then keep a very very strict stoploss
on both sides!
best of luck for ur trading in future!