How to trade on Crudeoil Options

pannet1

Well-Known Member
#11
i think you are calculating the leverage in a wrong way.

suppose if Gold Futures is trading at Rs 1000 and the lot size is 100 Qty.
so the cost of the commodity is 1000 x 100 qty = 1,00,000
if the broker allows you to trade it on intraday basis with just 500 Rs for 1 lot then you are leveraging at 200 times. 1,00,00 / 500 = 200X
you are wrong because you are taking into account NRML margin ... which itself is already leveraged.
 
#12
Pannet, but there are only two types .. NRML for which crude costs around 40000 and MIS for which it is 20000 .. now if i trade with cover order, it is 6000 .. now tell me which way i'll calculate
 

pannet1

Well-Known Member
#13
Pannet, but there are only two types .. NRML for which crude costs around 40000 and MIS for which it is 20000 .. now if i trade with cover order, it is 6000 .. now tell me which way i'll calculate
i am not even a part time commodity trader yet... so i wont know practically .. all you need to know is how much money i need to trade CRUDE for intraday ...... you need some surplus amount . because you dont want to panic if the trade goes against you ....... usually its a good idea to have 5times or more over and above what is needed to trade one lot of CRUDE ... so based on the link i sent you ... for trading 1 lot of CRUDE you need Rs 2616 for July contract ...

Select CRUDE from the drop down and see for yourself
https://www.gcbroking.in/margintable
 
#15
i realised you missed the link here too

https://www.gcbroking.in/margintable

disclaimer: i am not affiliated to gcbroking.

BTW: Whats the difference between intraday and MIS ... i thought both are same.
Pannet, Contacted GC Traders .. seems to be ok sort .. i went through their website .. well .. may by next week hope I'll be trading crude at 1/3rd of the price at which i am currently trading .. many thanks to you
 

pannet1

Well-Known Member
#16
Pannet, Contacted GC Traders .. seems to be ok sort .. i went through their website .. well .. may by next week hope I'll be trading crude at 1/3rd of the price at which i am currently trading .. many thanks to you
even with zerodha if you use cover order (a fixed stop loss) order, you will get even better margin. but please be beware the number one killer of day trader is excess leverage.

the key to victory is exploring some way of not taking Stop Loss to home. (one way is to convert the MIS order to NRML) and take opposite position in next month contract.
 

rpsvinod

Well-Known Member
#17
i am not even a part time commodity trader yet... so i wont know practically .. all you need to know is how much money i need to trade CRUDE for intraday ...... you need some surplus amount . because you dont want to panic if the trade goes against you ....... usually its a good idea to have 5times or more over and above what is needed to trade one lot of CRUDE ... so based on the link i sent you ... for trading 1 lot of CRUDE you need Rs 2616 for July contract ...

Select CRUDE from the drop down and see for yourself
https://www.gcbroking.in/margintable
Hi Pannet,
Did u made any trades based on this 2K Margin on Crude?

RPS. VINOD
 
#18
even with zerodha if you use cover order (a fixed stop loss) order, you will get even better margin. but please be beware the number one killer of day trader is excess leverage.

the key to victory is exploring some way of not taking Stop Loss to home. (one way is to convert the MIS order to NRML) and take opposite position in next month contract.
Noted with thanks Pannet ..
 

pannet1

Well-Known Member
#19
Hi Pannet,
Did u made any trades based on this 2K Margin on Crude?

RPS. VINOD
i am not trading yet .... i have given it to my guru and he will trade for me ..... soon he will open an account for me .... in that company . that type of less margin is not very rare with commodity companies .... its also important to know when they auto square off intraday trades.

disclaimer: please note that i am not recommending any company. i will not be responsible for any consequences of your choice of brokerage company.
 
#20
i am not trading yet .... i have given it to my guru and he will trade for me ..... soon he will open an account for me .... in that company . that type of less margin is not very rare with commodity companies .... its also important to know when they auto square off intraday trades.

disclaimer: please note that i am not recommending any company. i will not be responsible for any consequences of your choice of brokerage company.
At the max what will happen .. they may try to run off with our money .. well, is it really possible? .. in that case just start the account with 5K or even 3K, try to earn profits .. if you lose its just 3k .. if you earn profits, just keep 20 or 30 k at the max with them .. keep withdrawing excess amount .. lol .. NB: I am in no way telling the GC are bad brokers .. instead I myself have printed out the application just now .. again, I am in no way acting as a recommending agent for them :D:D
 

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