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need advice in trading in F&O

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  #1  
Old 30th November 2006, 04:54 PM
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Default need advice in trading in F&O

Dear All,
I am a small investor. I have Rs 10000 for trading.
Is this amount sufficient for trading in F&O.
Can you plz guide me with some example. I have ICICI account.

thanks,
sachin
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  #2  
Old 30th November 2006, 06:41 PM
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Default Re: need advice in trading in F&O

Hello Sac-d,

In short NO. It would be better to stick to the cash market or even better a good MF.
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Old 30th November 2006, 07:17 PM
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Default Re: need advice in trading in F&O

yes,u can trade in f&o , but u only can'buy' contracts mainly in 'out of money' .
for 'option' trading this money is not bad.
but one friendly advice--never trade with icici
thank you,
Rajib.
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Old 30th November 2006, 08:06 PM
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Default Re: need advice in trading in F&O

Thanks Rajib and Vince
I am new in the market and I thought that ICICI is more user freindly and is reputed in online trading. Plus interlinked with bank gives little feasibility in money transfer.
Vince at this moment as market is on its high i am little scared to enter in cash segment. Thats why I wanted to try in F&O. Yes I have invested in Mf and this is the amount now inmy hand.

regards.
Sachin
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Old 30th November 2006, 09:01 PM
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Default Re: need advice in trading in F&O

Given the amount of funds you have at your disposal, and assuming that having invested in MFs, this Rs. 10000 is your risk capital. You will not be able to trade in futures, coz this amount will be insufficient for initial margin. For the same reason, you will not be able to sell options. That leaves the buying of options depending on your view of market direction.
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Old 1st December 2006, 12:29 PM
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Default Re: need advice in trading in F&O

Thanks for your advice. Your reply in such a simple words is what i can understand.
One more thing if possible can u breif what is long call and short call.
Thanks again
Sachin
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Old 1st December 2006, 01:11 PM
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Default Re: need advice in trading in F&O

Long call is buying a call. The maximum loss is limited to the premium you pay, and the profit potential is unlimited. You would buy a call when you expect prices to rise sharply.
Short call is selling a call. The maximum profit is limited to the premium you receive, and the loss potential is unlimited. You would sell a call when you expect prices to fall, or remain rangebound.
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Old 1st December 2006, 06:29 PM
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Default Re: need advice in trading in F&O

Thanks for your simple and sweet description.
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Old 1st December 2006, 08:24 PM
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Default Re: need advice in trading in F&O

dear sac d...please dont take any offence...but since ur knowledge is so limited, do not try trading fno with ur capital. u might as well put it in an fd or if u want to gamble, "invest" in playlotto. first learn about the mechanics, and what moves options. else in all probabilities, u may lose all ur 10000 and never come back to options again, thinking its too risky. u wont be able to take advantage of this unique instrument again.
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Old 4th December 2006, 12:33 PM
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Default Re: need advice in trading in F&O

Dear Beginer
I know it is not simple and that is why i have asked for the advice.What is play lotto? I dont know anything about that. I havent invested anything in FNO as I am still learning the basics.
thanks for ur advice once again.
regards,
Sachin
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