Complete rookie questions

#1
Hi I was trading forex international pairs for about 3 years but i recntly quit it due to heavy regulations by tht RBI. now I want to trade in the indian market and I have no idea about how it works Really no idea so i was hoping if anyone would help me with ongoing questions like -

What is the difference between nifty options and nifty futures and how can we intra day trade them ?
Are the based on leverage as same as International forex pairs ?
What are derivatives ?
how does nifty futures and nifty options differ from the original nifty Index ?
How would you calculate how much to risk? suppose 2% on a trade
does trading have features Like SL and TP
How much minimum investment is needed
What are futures exactly ?
What are Options ?
are there some books,courses available ?
etc etc

Also is there demo trading available with fully T.A(charts) where I can practice ?
 

mastermind007

Well-Known Member
#2
-----------------
Shaadi karna hai toh Nirma Wali se karo, kyunki wahi kehti hai pehle istamaal karo phir vishwaas karo
Lagta hai ... tune kabhi Nirma kharidaa nahi. Dukandar paise pehle le leta hai... Baad mein chahe tum vishwaas karo ya nahi...
 

praveen98

Well-Known Member
#7
Hi I was trading forex international pairs for about 3 years but i recntly quit it due to heavy regulations by tht RBI. now I want to trade in the indian market and I have no idea about how it works Really no idea so i was hoping if anyone would help me with ongoing questions like -

What is the difference between nifty options and nifty futures and how can we intra day trade them ?
Are the based on leverage as same as International forex pairs ?
What are derivatives ?
how does nifty futures and nifty options differ from the original nifty Index ?
How would you calculate how much to risk? suppose 2% on a trade
does trading have features Like SL and TP
How much minimum investment is needed
What are futures exactly ?
What are Options ?
are there some books,courses available ?
etc etc

Also is there demo trading available with fully T.A(charts) where I can practice ?
HI pirate trader,
What is the difference between nifty options and nifty futures and how can we intra day trade them ?
Nifty options and nifty futures are two different derivatives whose value is derived from the same underlying, that is Nifty spot index. Option value depends upon the strike price-spot price, time to expiry, volatility etc. Where as future value depends upon Nifty spot + premium or nifty spot -discount, at times it tracks almost spot index value.
Are the based on leverage as same as International forex pairs ?
Yes, both these derivatives are leveraged products like forex pairs.
How would you calculate how much to risk? suppose 2% on a trade
does trading have features Like SL and TP
Nifty future lot size is 50 and if the price is @5400 one contract value will be 2,70,000 INR ,if your trading capital is say 1,00,000 INR and you want to take 2% risk is 2,000 INR .If you buy one contract of nifty future your stoploss will be 5400-40= 5360, and if you sell 1 lot of nifty future your stop loss will be 5400+40=5440. You have to consider brokerage and slippage also in actual trading.
SL is available , but OCO or bracket orders are not available with most brokers.
How much minimum investment is needed
For intraday trading of 1 lot of nifty futures 15K and 30K is minimum needed margin to carry forward the position to next day, but these are minimum margins you should have sufficient cushion capital for mark to market and draw downs as per youor trading plans. Many trading plans suggest 1LAkh for 1 lot nifty future trading...but that is entirely traders personal choice.
What are futures exactly ?
What are Options ?
are there some books,courses available ?
Please visit nseindia.com ->education page, you will get basics in NCFM study materials, which can be downloaded as PDFs.
Also is there demo trading available with fully T.A(charts) where I can practice ?
Try MOneybhai.com ....but as far as i know not many Demo accounts are available with good TA capability as they are in forex trading.
All the best,
praveen
 
#8
thanks very well explained !
HI pirate trader,
What is the difference between nifty options and nifty futures and how can we intra day trade them ?
Nifty options and nifty futures are two different derivatives whose value is derived from the same underlying, that is Nifty spot index. Option value depends upon the strike price-spot price, time to expiry, volatility etc. Where as future value depends upon Nifty spot + premium or nifty spot -discount, at times it tracks almost spot index value.
Are the based on leverage as same as International forex pairs ?
Yes, both these derivatives are leveraged products like forex pairs.
How would you calculate how much to risk? suppose 2% on a trade
does trading have features Like SL and TP
Nifty future lot size is 50 and if the price is @5400 one contract value will be 2,70,000 INR ,if your trading capital is say 1,00,000 INR and you want to take 2% risk is 2,000 INR .If you buy one contract of nifty future your stoploss will be 5400-40= 5360, and if you sell 1 lot of nifty future your stop loss will be 5400+40=5440. You have to consider brokerage and slippage also in actual trading.
SL is available , but OCO or bracket orders are not available with most brokers.
How much minimum investment is needed
For intraday trading of 1 lot of nifty futures 15K and 30K is minimum needed margin to carry forward the position to next day, but these are minimum margins you should have sufficient cushion capital for mark to market and draw downs as per youor trading plans. Many trading plans suggest 1LAkh for 1 lot nifty future trading...but that is entirely traders personal choice.
What are futures exactly ?
What are Options ?
are there some books,courses available ?
Please visit nseindia.com ->education page, you will get basics in NCFM study materials, which can be downloaded as PDFs.
Also is there demo trading available with fully T.A(charts) where I can practice ?
Try MOneybhai.com ....but as far as i know not many Demo accounts are available with good TA capability as they are in forex trading.
All the best,
praveen
 

Giraffe

Well-Known Member
#10
Praveen bhai ney jyaada tar queries reply kar hi di hain, few things I want to add.

1. How much minimum investment is needed

If starting with FNO, ideally you should have few lacs.
You can trade intraday nifty futures with 15-30K, and options with even less than 5K. But if just starting, initial losses might be unbearable. Also how would you put 2% stop loss of nifty futures when trading with 20K?. You will give only 5-6 points room to nifty to move against you. Too many whipsaws will occur and even slight slippage will increase your percentage loss greatly.


2. are there some books,courses available ?
Search torrent sites (esp. the one with name similar to yours....;), itni books mil jayengi ki padhtey padhtey aadmi swarg (on narak depending on his deeds.:p) sidhaar jaayey. They were there in megapacks of few GB. Lots and lots of books. Same with videos, many of them, not much on torrents (esp. since demenoid shut down), but can find them on file hosting sites.

3. Also is there demo trading available with fully T.A(charts) where I can practice ?
You may open account with any of the bkgs here and use there terminal.
Demo Trading: Available on Omneysys Nest site (NEST plugin waley), which you get with NSE NOW terminal.
Good Charting and TA - Sharekhan Tradetiger but bit high brokerage.
NSE NOW - Okish charting with NEST plugin, accurate quotes, very fast trade executions. You may open an a/c with any of bkg that provides NSE NOW or go for tradetiger.
 

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