Futures Trading with No Risk

#1
Hello Traderji Members,

I am a new member here.

I have been doing equity trading for sometime (Icicidirect's brokerage is probably the HIGHEST in market).

Even though I have heard about derivatives & commodities, I never explored or traded in them.

Recently, a trading firm approached me with following:
1) Guaranteed 5% monthly returns from Nifty Futures.
2) Returns will be deposited on day of expiry (i.e. last Thursday of month)
3) 25% will be the commission
4) The investment has to be minimum 5 Lakh. It can be cash or in the form of stocks or mutual funds.
5) 5% monthly return shall be independent of the performance of the stock or fund (i.e. the return given by the stock or fund will be over & above 5%).
6) On day of expiry, all open positions are squared off. So, either there is profit or there is "no profit no loss". The maximum risk is less than 1%.
7) The trades are done by NSE certified professionals and there is no fudging or gambling or manipulation involved. All trades & returns will be will be reflected in my online trading/demat account

I hold mutual funds of few lakhs. Please throw light on whether I should let those MFs to be used as margin for future trading as above. My MFs are giving moderate returns. I see no risk if they are used as margin for futures & give me additional returns.

Thanks in advance.
 
#5
Hello Traderji Members,

I am a new member here.

I have been doing equity trading for sometime (Icicidirect's brokerage is probably the HIGHEST in market).

Even though I have heard about derivatives & commodities, I never explored or traded in them.

Recently, a trading firm approached me with following:
1) Guaranteed 5% monthly returns from Nifty Futures.
2) Returns will be deposited on day of expiry (i.e. last Thursday of month)
3) 25% will be the commission
4) The investment has to be minimum 5 Lakh. It can be cash or in the form of stocks or mutual funds.
5) 5% monthly return shall be independent of the performance of the stock or fund (i.e. the return given by the stock or fund will be over & above 5%).
6) On day of expiry, all open positions are squared off. So, either there is profit or there is "no profit no loss". The maximum risk is less than 1%.
7) The trades are done by NSE certified professionals and there is no fudging or gambling or manipulation involved. All trades & returns will be will be reflected in my online trading/demat account

I hold mutual funds of few lakhs. Please throw light on whether I should let those MFs to be used as margin for future trading as above. My MFs are giving moderate returns. I see no risk if they are used as margin for futures & give me additional returns.

Thanks in advance.
Don't fall into such traps...don't use your mutual funds for margins....without knowing any further details I can tell you that such schemes are fraud schemes.

Smart_trade
 

Tlahuicole

Well-Known Member
#6
There is nothing called as "futures trading with no risk", Investing in equities is itself subject to market risks, people you say are trading in derivatives which definitely has a huge risk involved. Ask them to show their contract notes for last one year and see how they have performed.
 

Tlahuicole

Well-Known Member
#7
Don't fall into such traps...don't use your mutual funds for margins....without knowing any further details I can tell you that such schemes are fraud schemes.

Smart_trade
As ST has said, don't fall into such traps. Mutual funds are one of the best investment avenues, don't lose them by using margin for derivative trading.
 
#10
How about this :

Buy current month NF and sell next month's NF. On expiry day the premium comes down by about 20-25 points ?? About 1000Rs. on 50000 investment.
 

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