How to trade in futures and options india


How are Stock Futures different from Stock Options? In stock options, the option buyer has the right and not the obligation, to buy or sell the underlying share.

Risk-return profile is symmetric in case of single stock futures whereas in case of stock options payoff is asymmetric. Also, the price of stock futures is affected mainly by the prices of the underlying stock whereas in case of stock options, volatility of the underlying stock affect the price along with the prices of the underlying stock. What are Stock Futures? How are Stock Futures priced? What are the opportunities offered by Stock Futures?

How are Stock Futures settled? Can I square up my position? When am I required to pay initial margin to my broker?

Do I have to pay mark-to-market margin? What are how to trade in futures and options india profits and losses in case of a Stock Futures position? What is the market lot for Stock Futures?

Why are the market lots different for different stocks? What are the different contract months available for trading? What is spread trading on BSE? As an investor, how do I start trading in Stock Futures? What securities can How to trade in futures and options india submit to the broker as collateral?

How does an investor, who has the underlying stock, use Stock Futures when he anticipates a short-term fall in stock price? How can an investor benefit from a predicted rise or predicted fall in the price of a stock? What is pair trading?

An introductory article on Futures. Describes what a forward contract means along with a practical illustration of the concept. The article discusses the procedure for settling the forward contract. The article starts by discussing the drawbacks of Forwards contracts and progress to discuss how a futures contract overcomes these drawbacks. Examples are quoted to make the concept clear. The article explains how a trader can employ futures contract to financially profit from his directional view on a stock or an index.

Practical examples are used to illustrate how the trade would evol. This chapter discusses leverage, the central theme of futures trading in detail. The contract between futures and spot market is discussed.

The chapter also touches how to trade in futures and options india leverage calculation. This chapter gives you all the necessary information that you need to know before placing your first futures trade. The chapter also throws light into why brokers and exchanges charge margins.

This chapter gives you an overview of how to use a margin calculator. In addition the chapter also touches how to trade in futures and options india spread trading such as calendar spreads. The chapter explains all that you need about shorting, be it futures or stocks with practical real life examples.

Emphasis is also made on things you need to take care of when you short stocks or futu. This chapter is a primer on trading Nifty Futures. All that you need to know about Nifty futures is discussed in this chapter including the impact cost, liquidity, and benefits of trading Nifty future.

This chapter is a primer on how future contracts are priced with respect to the spot prices. The chapter also discusses the concept of premium, discount, and the convergence of futures and spot price.

This chapter gives a step by step instruction on how to hedge a portfolio of stocks with the help of a futures instrument. The chapter also has a detailed description on beta and method to calculate how to trade in futures and options india. This chapter explores in details the concept of open interest and its relevance to futures trading. The chapter also includes a guide on how to interpret the change in open interest with respect to ch. Background — Forwards Market An introductory article on Futures.

Introduction to Stock Markets 14 chapters 2. Technical Analysis 20 chapters 3. Fundamental Analysis 16 chapters 4. Futures Trading 12 chapters 5. Options Theory for Professional Trading 23 chapters 6. Option Strategies 13 chapters 7. Markets and Taxation 7 chapters 8. Trading Systems 10 chapters.