# Why to trade on Nifty 2000 Call?

#### infoshine

##### New Member
Recently I noticed that there is trading going on Nifty 2000 call, which is trading around 3300 after noticing this I am confuse why people trade on Nifty 2000 call. Yes there is no premium at all but why should they not trade on Nifty, why they trade on 2000 call.

#### mayur553

##### New Member
Your options expense is calculated on the premium at which its trading multiplied by the quantity. where as your futures expenses is calculated on the total value that is current nifty level multiplied by no of quantity.

Eg for 2000 call it would be trading at 3300 so expenses would be calculated at 3300*50 where as for future it would be calculated as 5300*50. so a diff of 2000*50 could be saved.

I guess this is the right explanation.

#### infoshine

##### New Member
Thanks Mayur your explation is looking right but I still have doubt when we buy Nifty we have to just give margin money but when we buy options we have to give full amount.

If we are buying Nifty 2000 call premium is 3300 and we have to pay 3300*50= 165000 but we buy Nifty we just need margin of about 45000.
If I am wrong then please explain me how it works.

Thanks

#### mayur553

##### New Member
Yes i agree u have to pay margin money only when u buy nifty but when it comes to the calculation of expenses.. if you buy option ur expense per lot would be calculated on 3300*50=165000 while for future it would be 5300*50=265000 so ur expenses increases with that increase in value of 1 lac.