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Explanation Derivative F&O trading With Current Market Updates

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Nifty ends below 8000 mark; Pharma gains, Realty stocks dips.
After enjoying two consecutive days of gains Benchmark share indices ended lower amid consolidation and  weak global cues, as investors booked profits in index heavyweights while the weak rupee also weighed on market sentiment which led Nifty to ends below 8000 mark.
HEADLINES FOR THE DAY:    
•    L&T arms wins new order today worth Rs 14.89 billion; stock gains.
•    Godrej Consumer gains after RBI hikes FII limit to 40 pct from 35%.
•    Gammon Infra dips as plans to divest nine projects to BIF Holdings.
•    Punj Lloyd reported that the company wins new orders worth Rs 1094 crore.
•    IT major Accenture plans to acquire small, mid-sized consultancy firms.
•    Ratan Tata invests in Infinite Analytics.
•    Sadbhav Engineering, SKF India shares dips in the back of heavy volumes.

KEY STOCKS FOR THE DAY:
•   Auro Pharma shares moved higher as got the nod from USFDA for Raloxifene Hydrochloride Tablet.
•    ONGC today said that company and its partners plan to invest 24 billion dollars in the Mozambique gas field.
•   Dishman Pharma gains more than 8 pct today after reported 50.8% hike in Q1 net profit, which stood at Rs 37.7 crore from Rs 23.8 crore for the same quarter last year.
•   Motherson sumi shares fall after Sudarshan Sukhani said it is coming down and I wouldn’t buy it. It is a short sell, but that is a different matter.
•   Wipro today hires Ankur Prakash [a top executive from TCS {Tata Consultancy Services} ] as head EM (emerging markets) business.
•    Reliance Group today reported that they had expanded business cooperation with Qatar.
•    STAR completes the closure for the acquisition of generic pharmaceutical business in Australia.
•   Bharti Infratel gains in an earlier trade, Recently, Compass vale Investments sold shares of the company.
•   Infosys shares dip despite of positive news flow that govt gives nod for 3 more campuses in Bengaluru.
•    GMR Infra moved higher on the media, news that the company gets exported power to Bangladesh.

•   IDBI Bank bank surged after company’s shareholder/board approve FCB (foreign currency borrowing limit).
•    Astec Lifesciences gains more than 8% after Godrej Agrovet has made an open offer to buy 26.05 percent.
•    Wockhardt Pharma shares were under pressure today on drug recall.

CALLS FOR NEXT TRADING SESSION:
•   VRLLOG EQ heading towards its fresh high, breakouts seen in the next trading session. Buy above 479 targets 483.80/488.60/493.50 SL 474.
•   Buying opportunity is seen in Escorts EQ as in 15 min charts small channel pattern could be seen as well as the stock hits fresh 52-weeks high today, Entre above 178.70 targets 180.50/182.30/184.11 SL 176.50.

How to start Derivative F&O trading?
The role of derivative trading is similar to another share trading in the cash segment (buy & sell shares), it is a special type of trading tools. They are special agreement where value gets from an underlying security.
Futures and Options (F&O) are two special categories of derivatives obtainable for the India stock markets.
In futures trading, the investor trade for the buy/sell positions in an index (i.e. SENSEX, NIFTY) with Nifty Trading Tips or a stock (i.e. TATA, Reliance) contract with Stock Trading Tips. If, during the process of the agreement life, the price change in traders’s goodwill (increase in case you have a special purchase position or drop in a situation where you have a sells place), the trader create profit. In case the price progress is adverse, trader invites losses.

 Few fundamental things about F&O trading:
The F&O trading accounts for most favorable trading account across exchanges in India. They are the most accepted trading tools worldwide. To get the buy/sell position in index/stock, futures trading, an investor has to put the definite % of the order cost as margin. Which show if a trader purchase future agreement value of Rs 2 Lakhs, he spends just approximately 10% cash to a broker which is Rs 40,000 as margin money. This provides opportunity to deal more with small cash. Benefits or losses are measured every trading day until the investors sell the agreement or it terminates.
Margin money is analyzed every day. Which denote  that if the trader doesn’t have sufficient cash (i.e. Margin money) in his trading account (on any trading day when the investors are holding their trade position), they have to deposit the this margin money to a broker and broker can sell his F&O agreement and get better the investment.
Unlike stocks; derivative stock has a termination. Which denotes if the investors does not sell awaiting a pre-decided termination date, the deal is terminated and profit or loss is distributed to you by the broker.
Future Trading can be processed on the Indian indices (Nifty, Sensex). NIFTY Futures are  the most considerable traded future agreement with India.

Why should I deal with F&O trade?
With futures trading, the stock investors can leverage on deal that limit by taking buy/sell trading positions much additional than what you could have got to cash section. Although, the risk report of your contact goes positive.
Settlements are completed on a daily approach until the agreement expires. Profits/losses are measured (and credited/debited in the trading account) on the termination point of the trading day.The Demat trading account is not required for F&O segment trading. All future contact is cash settled. Agreement place is detained by the contacts until they reach expire date.
The F&O trading positions are approved onward to the next trading day and can be continued till the termination of the particular agreement and square off any time throughout the agreement life. This is special from ‘Margin Trading’ on which their investors  have to complete the position the similar day.

Why all stocks are not available for F&O trading?
F&O agreement of individual companies is not presented for all the companies indexed on stock exchanges. Only those stocks, which fulfil  the condition of the require liquidity and  stock volume, have been measured for futures trading. Or indexes companies whose stock have higher liquidity and volume of trading on stock exchanges are appropriate for the F&O trading segment. Stock exchange makes a decision which company’s F&O agreement can be dealt with the exchange. According this analysis, trader makes own trading strategies like as Free Option Tips, Stock Tips and Forex Tips etc.

What  is the meaning of ‘Square off’ in future trading?
‘Square off’ denote a process where the trader sells a future position  For instance; if you purchase 1 lot of NIFTY future stock on 20th July 2015 and choose to sell it on 24th July 2015; you really square off your trading future position.

Can I sell (or square off) the F&O agreement before termination date?
Definitely, you can sell the agreement anytime before the termination  date that means trader square of the open position before expiry. If you do not sell the agreement by expiry date; the agreement get terminated and profit / loss is distributed  with you.

How to start Derivative F&O trading?
The role of derivative trading is similar to another share trading in the cash segment (buy & sell shares), it is a special type of trading tools. They are special agreement where value gets from an underlying security.
Futures and Options (F&O) are two special categories of derivatives obtainable for the India stock markets.
In futures trading, the investor trade for the buy/sell positions in an index (i.e. SENSEX, NIFTY) with Nifty Tips or a stock (i.e. TATA, Reliance) contract with Stock Tips. If, during the process of the agreement life, the price change in traders’s goodwill (increase in case you have a special purchase position or drop in a situation where you have a sells place), the trader create profit. In case the price progress is adverse, trader invites losses.

 Few fundamental things about F&O trading:
The F&O trading accounts for most favorable trading account across exchanges in India. They are the most accepted trading tools worldwide. To get the buy/sell position in index/stock, futures trading, an investor has to put the definite % of the order cost as margin. Which show if a trader purchase future agreement value of Rs 2 Lakhs, he spends just approximately 10% cash to a broker which is Rs 40,000 as margin money. This provides opportunity to deal more with small cash. Benefits or losses are measured every trading day until the investors sell the agreement or it terminates.
Margin money is analyzed every day. Which denote  that if the trader doesn’t have sufficient cash (i.e. Margin money) in his trading account (on any trading day when the investors are holding their trade position), they have to deposit the this margin money to a broker and broker can sell his F&O agreement and get better the investment.
Unlike stocks; derivative stock has a termination. Which denotes if the investors does not sell awaiting a pre-decided termination date, the deal is terminated and profit or loss is distributed to you by the broker.
Future Trading can be processed on the Indian indices (Nifty, Sensex). NIFTY Futures are  the most considerable traded future agreement with India.

Why should I deal with F&O trade?
With futures trading, the stock investors can leverage on deal that limit by taking buy/sell trading positions much additional than what you could have got to cash section. Although, the risk report of your contact goes positive.
Settlements are completed on a daily approach until the agreement expires. Profits/losses are measured (and credited/debited in the trading account) on the termination point of the trading day.The Demat trading account is not required for F&O segment trading. All future contact is cash settled. Agreement place is detained by the contacts until they reach expire date.
The F&O trading positions are approved onward to the next trading day and can be continued till the termination of the particular agreement and square off any time throughout the agreement life. This is special from ‘Margin Trading’ on which their investors  have to complete the position the similar day.

Why all stocks are not available for F&O trading?
F&O agreement of individual companies is not presented for all the companies indexed on stock exchanges. Only those stocks, which fulfil  the condition of the require liquidity and  stock volume, have been measured for futures trading. Or indexes companies whose stock have higher liquidity and volume of trading on stock exchanges are appropriate for the F&O trading segment. Stock exchange makes a decision which company’s F&O agreement can be dealt with the exchange. According this analysis, trader makes own trading strategies like as Option Tips, Stock Tips and Forex Tips etc.

What  is the meaning of ‘Square off’ in future trading?
‘Square off’ denote a process where the trader sells a future position  For instance; if you purchase 1 lot of NIFTY future stock on 20th July 2015 and choose to sell it on 24th July 2015; you really square off your trading future position.

Can I sell (or square off) the F&O agreement before termination date?
Definitely, you can sell the agreement anytime before the termination  date that means trader square of the open position before expiry. If you do not sell the agreement by expiry date; the agreement get terminated and profit / loss is distributed  with you.

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