Liquidity of stock futures question

[sayantan2u9]

Hi guys

i am a newbie,
would like to ask a simple question

i think u can make a good amount of money trading stock futures over 3-5 trading session

i want to know how is the liquidity for stocks futures like cesc,vip industries,acc etc which are not NIFTY50 stocks
n also how is the liquidity for stock futures of NIFTY 50

can someone please answer my query
those who have traded in stock future or those who have any information about this subject

 

[SavantGarde]

Hi Sayantan,

Best way to go about finding a liquidity is to put the Stock future on your Terminal watchlist... highlight it with the cursor and press F5 & you will see the flow orders.....thereafter you can decide whether you are comfortable with way the order is flowing.... also remember most stock futures go a through several lulls during a trading session... you might want to make a not of it.....

If you are newbie, as mentioned in your query... I would at first observe the price movements for atleast a month before entering a Live trade.

Would not suggest any newbie Trading Stock Futures with a capital of less than 3-4 Lacs..... (One may think what the hell SG is talking about considering Total margin for a particular Stock future is only 50K so why do we need almost 2.5-3.5 Lacs more.....It is simple Risk Control & MM...Don't confuse it with Mahindra & Mahindra.... It means Money Management).
Once you follow this simple MM ...one will automatically know how to scale in and scale out of a position....!!!

SG

Hi guys

i am a newbie,
would like to ask a simple question

i think u can make a good amount of money trading stock futures over 3-5 trading session

i want to know how is the liquidity for stocks futures like cesc,vip industries,acc etc which are not NIFTY50 stocks
n also how is the liquidity for stock futures of NIFTY 50

can someone please answer my query
those who have traded in stock future or those who have any information about this subject

 

[sayantan2u9]

ok.i will follow your advice

can u just tell me if NO. OF CONTRACTS TRADED is correlated to liquidity

for e.g. i saw no. of futures contracts traded for WIPRO was 4062 on 13dec
for CESC was 2330
for nifty was 540050


does this mean 4062 lots of wipro futures contracts where bought or sold?

 

[SavantGarde]

You will need to keep a track of how many Contracts get traded daily in a particular Futures...... & Nifty by far is the most Liquid.

WIPRO - Yes that is what it means.... Total of 4062 Contracts were traded & it could any number of combination of Buy & Sell... This is where OI helps in distinguishing ..How many were bought & sold...!!!

I think you might want to worry about that a bit later.... unless you are writing a thesis for a Doctorate...!!!

SG

ok.i will follow your advice

can u just tell me if NO. OF CONTRACTS TRADED is correlated to liquidity

for e.g. i saw no. of futures contracts traded for WIPRO was 4062 on 13dec
for CESC was 2330
for nifty was 540050


does this mean 4062 lots of wipro futures contracts where bought or sold?