How to trade futures and options in nifty - Top 4 Apps for Option Traders | Investopedia

If, during the course of the contract life, the price moves in traders favor rises in case you have a buy position or falls in case you have a sell positiontrader makes profit. In case the price movement is adverse, jifty incurs losses.

Futures and Options Market Instruments

The stock exchange defines the characteristics of the futures contract such as the underlying security, market lot, and the maturity date of the contract. Only those stocks, which meet the criteria on liquidity and volume, have been considered for futures trading.

For example; if you buy murex fx options lot of NIFTY future on 20th Aug and decide to sell it on 24th Aug ; you actually square off your future position.

Yes, you can sell the opitons or square off the open position anytime before the expiry date. MTM goes until the open position is closed square off or sell.

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The next question and an example in the later part of this article will explain you MTM process in detail. At the snd of every trading day; the open future contracts are automatically 'marked to market' to the daily settlement price.

This ozforex address the profits or losses are calculated based on the difference between the previous day and the current day's settlement price.

In other words; MTM means every day the settlement of open futures position iin place at the closing price of the day. The base price of today is compared with the closing price of previous day and difference is cash settled. The 3 month trading cycle includes the near month onethe next month two and the far month three.

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If the tutures Thursday is a trading holiday, then the expiry day is the previous trading day. For example; in the above table; 28th Aug is the expiry of this month's contract. The contract life of this future contract is from today to 28th Aug New contracts are introduced on the trading day following the expiry of the near month contracts.

The new contracts are introduced for three month duration. This way, at any point in time, there will be 3 contracts available for trading in the market for each security i.

Futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. To start trading in futures contract, you are required to place a certain percentage of the total contract as margin money. Margin is also known as a minimum down-payment or collateral for trading in future. Normally index futures have less margin than the stock futures due to comparatively less optoins in nature.

List of futures exchanges

It depends on the volatility in the market, script price and volume of trade. In that scenario, trader will have to allocate additional funds to continue with open position.

Otherwise broker can sell square off the future contract because of insufficient margin. optoons

Thus It is advisable to keep higher allocation to safeguard the open position from nifyt events. Margin positions can even be converted to delivery if you have the requisite trading limits in case of buy positions and required number of shares in your demat in case of sell position.

There is no such facility available in case of futures position, since all futures transactions are cash settled as ane the current regulations. If you wish to convert your future positions into delivery position, you will have to first square off your transaction in future market and then take cash position in cash market. Another important difference is the availability of even index contracts in futures trading.

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Rrade lot size is different from contract to contract. You hold the equity future contract until you sell it or it expires on predefined expiry day in our case its 25th Sept Let's check few useful fields in this.

Below is the contract note received from broker on Day 1. The next contract note will be send to you on the day you sell the contract. Brokers also share the ledger detail with the client with a 'client account ledger detail' document. This document provides you detail about all the financial transaction done aand broker on day 1.

But on day 2 the market is closed as its Saturday. Note that the position is now name as 'Brought Forward'.

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Now let's check the accounting for Day Similar to previous day, we decided to carry forward the future contract. The price went up by Rs Once again we decided to carry forward the contract.

The price remain flat and actually went down by Rs 2. ProStocks, an online stock broker based in Mumbai is among the popular broker.

We can help you find the right broker for your trading needs. User Comment Post New Message.

For example; first day the broker will deduct Rs GTC are limit orders where you could decide the price and let the order in the system for few months. If the price reaches, the order get processed.

Follow as usual from sunday night. Position trade is not open but are bearish since levelstill trend is downside corrective.

Today's intraday are at high for safety or avoid at low. Position traders can take sell on minor bouncefollow with daily reportat low may risk.

Position traders wait for minor bouncewe will again try sell on highfollow with daily report. As usual from Position traders can sell minor and hold with SL how to trade futures and options in nifty, or follow daily report. Intraday avoid todaytrend is downbut minor bounce may their.

Position trader can book profit levelbut still trend is downcan again sell in bouncewill define in daily report. Position trader can also follow same SL todaybut will modify it next dayT are as given Last sell T was achieved.

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Position traders hold short SLCompulsory T was achieved but still downside inforcemore can sell but in bounce avoid at low level. Position trader keep short Nifyy Position trade not openfollow last calls below. Clients member fund lye with them and we ask them to invest timely. Investment made in this plan are more safer and higher returnable then other fund plans.

Fund limit minimum 5 lakh and maximum no limits. Any more query contact personally on phone. For performance visit our profit share plan on our website. Fuutres this we give calls in strong fundamental and high volume stock like reliance, state bank, hdfc, acc etc.

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In a year at a time we give stocks for short, medium and long term. For performance visit our investment plan buttons on our website.

In this plan we recover losses made by traders in stock market by our long experience through future and option segments. Membership nift not be less then 5 lakh and upper has no limit.

For any more query can contact personally on calls. In a year minimum 3 calls to maximum 6 calls members can be expected.

Description:Nifty Future Tips, Nifty Tips, Nifty Option Tips, Call and Put Option Trading Tips, illinoisbowfishing.info, 20 Yrs Experience, 85%+ Results, Indian Stock Market.

Views:1892 Date:28.04.2016 Favorited: 3954 favorites

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