Equity vs Derivatives
- Thread starter NOMINDTR
- Start date
Is it real ? Wow gsalvadi. Good to see you back after long time. Hope you are doing well.
imo, following are some of the reasons to trade derivatives
- ability to use leverage hence better ROI ($500 of margin to trade $65000 worth of S&P500)
- ability to take short posiitons
- ability to trade index (good for hedging etc)
- and for some - it is more ego satisfying to say that I trade in F&O (i.e. I am one notch above stock trader or I am a big trader).
Primary aim of derivaties was to help in managing risk of owning any asset.
Hope this helps.
happy trading.
imo, following are some of the reasons to trade derivatives
- ability to use leverage hence better ROI ($500 of margin to trade $65000 worth of S&P500)
- ability to take short posiitons
- ability to trade index (good for hedging etc)
- and for some - it is more ego satisfying to say that I trade in F&O (i.e. I am one notch above stock trader or I am a big trader).
Primary aim of derivaties was to help in managing risk of owning any asset.
Hope this helps.
happy trading.
Hello all
this is whimmy.I just joined traderji.com.
I am a student and am very much intereseted in knowing about stock market.
The first thing that i want to make clear is On BSE and NSE, same companies are listed and Prices on both are different (of same company,s stock). How this happens...????
Please help clearing my doubt.
this is whimmy.I just joined traderji.com.
I am a student and am very much intereseted in knowing about stock market.
The first thing that i want to make clear is On BSE and NSE, same companies are listed and Prices on both are different (of same company,s stock). How this happens...????
Please help clearing my doubt.
That reduces the gap between "stock with margin" and futures trading.
I think other aspects that you will have to look is
- the liquidity of stock to get proper fill for your increased stock qty getting 1 contract might be easier then getting fill on 1000+ qty on stock. It is also important to see how quickly you can get out from the position.
- no swing trade on short side.
- brokerage
hope this helps.
Happy trading.
I think other aspects that you will have to look is
- the liquidity of stock to get proper fill for your increased stock qty getting 1 contract might be easier then getting fill on 1000+ qty on stock. It is also important to see how quickly you can get out from the position.
- no swing trade on short side.
- brokerage
hope this helps.
Happy trading.
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