Beginners Guide

[rajputz]

Thanks for such a good and valuable information
What is forex and please elaborate if possible on derivatives

With regards

Rajesh

Sorry buddy, but right now i am concentrating on Indian Stock market and only futures as i have not traded in Options...may be i am not the right person at the present moment to teach forex...

 

[Douglas]

Thank you for introducing this thread, Hey Rajputz whats ur email address so dat i can ask u question directly ?

 

[vssoma]

Dear rajputz,
please check the image below and give me idea, how can i calculate the brokerage for intraday.

What is Brokerage and how one should calculate the brokerage

thank you,

 

[rajputz]

Dear rajputz,
please check the image below and give me idea, how can i calculate the brokerage for intraday.



thank you,

i have explained the calculation in the thread some where...all you need to do is replace assumed brokerage in it with your brokerage....and sum it up on both buy and sell side, whatever may be in your case...

 

[twist]

hi raj ur guides are really helpfull to me & i chk this thread daily thanks alot btw can u pls post abt "FUTURES" like what is futures n how to trade in it?

thanks.

 

[rajputz]

hi raj ur guides are really helpfull to me & i chk this thread daily thanks alot btw can u pls post abt "FUTURES" like what is futures n how to trade in it?

thanks.

Will update about futures on saturday...off day so will have time that day...

 

[twist]

Will update about futures on saturday...off day so will have time that day...

ok thanks for quick reply

 

[bunny]

dear rajputz,
are junior nifty and minifty the same or different one's.
thank you,

Hi Swami,
NIFTY JUNIOR is an index just like NIFTY 50. You can find more information about it and other similar indixes on this page: http://www.nseindia.com/content/indices/ind_majorindices.htm

There are 50 constituents stocks in each of the S&P CNX NIFTY and CNX NIFTY JUNIOR indexes. Together, these 100 stocks represent the 100 most-liquid stocks traded on NSE. They are collectively known as CNX 100 stocks.

NIFTY FUTURE and MINI NIFTY are future contracts with S&P CNX NIFTY(NIFTY 50 index) as underlying. The lot size for the standard NIFTY FUTURE is 50, where as that for MINI NIFTY is 20(hence the word mini).

 

[rajputz]

Hi Swami,
NIFTY JUNIOR is an index just like NIFTY 50. You can find more information about it and other similar indixes on this page: http://www.nseindia.com/content/indices/ind_majorindices.htm

There are 50 constituents stocks in each of the S&P CNX NIFTY and CNX NIFTY JUNIOR indexes. Together, these 100 stocks represent the 100 most-liquid stocks traded on NSE. They are collectively known as CNX 100 stocks.

NIFTY FUTURE and MINI NIFTY are future contracts with S&P CNX NIFTY(NIFTY 50 index) as underlying. The lot size for the standard NIFTY FUTURE is 50, where as that for MINI NIFTY is 20(hence the word mini).

thanks for dropping in...i was beginning to wonder if the thread is alone in its way...

 

[rajputz]

Futures

Futures A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. Futures can be used either to hedge or to speculate on the price movement of the underlying asset. For example, a producer of corn could use futures to lock in a certain price and reduce risk (hedge). On the other hand, anybody could speculate on the price movement of corn by going long or short using futures. The primary difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfil the terms of his/her contract.


future is no different then the equity....the only noticable difference is that it has a particular lot that you can take with expiry date on last thursday of the month. you can both buy or sell the future. also u have to pay only some percentage of the money(as directed by SEBI) like 20% 21% etc. the brokerage charged on futures is also less, the reason being that the future contract is just virtual settlement of shares or we can say that only money is transfered but the shares are not delivered. you can btst it or just intraday. the future you buy can be taken of any date like last thursday of this month, next month or coming month. the volatility of future of this month is the highest and decreases for the next month.