Nifty future or Stock future? Which is good for positional trading?

#1
Hi Guys,

Can anyone please suggest which option is good for positional trading. Trading in Nifty future or Stock future.

Nifty future require large capital. We need to have Rs.350000 to trade in 500 qty. Where as it requires only Rs.50000 to Rs.60000 to trade in Stock futures.

Experienced traders please share your thoughts interms of volatility, risk factor (gap up/down opening) and other criterias.
 

cinderblock

Well-Known Member
#2
Hi Guys,

Can anyone please suggest which option is good for positional trading. Trading in Nifty future or Stock future.

Nifty future require large capital. We need to have Rs.350000 to trade in 500 qty. Where as it requires only Rs.50000 to Rs.60000 to trade in Stock futures.

Experienced traders please share your thoughts interms of volatility, risk factor (gap up/down opening) and other criterias.
Not an experienced trader so will not talk not about complicated things like volatility and risk factor and gaps.

Simple things first. Is 500gm of gold the same as 500 gm of silver?
 

jagankris

Well-Known Member
#3
Hi Guys,

Can anyone please suggest which option is good for positional trading. Trading in Nifty future or Stock future.

Nifty future require large capital. We need to have Rs.350000 to trade in 500 qty. Where as it requires only Rs.50000 to Rs.60000 to trade in Stock futures.

Experienced traders please share your thoughts interms of volatility, risk factor (gap up/down opening) and other criterias.
Your comparison of Margin requirements
3.5 Lakhs for trading 20 lots of Nifty Futures worth 41Lakhs - 11.71 times leverage - How did you arrive at this 20 lots figure ? just bcoz your broker allows ? :rofl:
vs 60,000 for 1 Lot of stock futures - Say 5 times leverage.

So what are the risks of leveraged trading ?
What is the max trading capital you will employ at any point of time in Trading?
What will be your maximum risk per trade ?
What will be your monthly risk after which trading will be stopped for that month ?
Have you taken in to consideration of >5% gaps even > 15% gaps fall in stock futures during result seasons or some bad news or court verdicts ?
Or your trading plan says to close the position before result days?
Have you back tested your system with the above said leveraged trading for at least 5 years duration to ascertain maximum draw down and maximum no of consecutive losses,largest loss etc ?
 

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