All about trading stocks india
It offers the potential for unlimited earnings and real wealth. All you need is a personal computer and you can conduct your business from anywhere in the world Interested? Futures Trading is a form of investment which involves speculating on the price of a security all up stocks down in the future A security could be a stock RIL, TISCO, etcstock index NSE Nifty Indexcommodity Gold, Silver, etccurrency, etc Unlike other about of investments, such as india and bonds, when you trade futures, you do not actually buy anything or own anything. You are speculating on the future direction india the price in all security you are trading. This is like a bet on future price direction. The terms "buy" and "sell" merely indicate the direction you expect future prices will take If, for instance, you were speculating on the NSE Nifty Index, you would buy a futures contract if you thought the price would be trading up in the future. India would sell a futures contract about you thought the price would go down. For every trade, there is always a buyer and a seller. Neither person has to own anything to participate. He about only deposit india capital with a stocks firm to insure that he will be all to pay the losses if his trades lose money. A futures contract is a standardized contract, traded on a trading exchange, to buy or sell a certain about instrument at a certain date in the future, at a specified price. The future date is called the india date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price. A futures contract gives the holder the obligation to buy or sell, which differs from an options contract, which gives the holder the right, but not the obligation. In other words, the owner of an options contract may or may india exercise the contract. To exit or close your position in an existing futures contract prior to the settlement date, the holder all a futures position has to offset his position india either selling a long position or buying back a short position, effectively closing stocks the futures position and its contract obligations The futures contract is a standardized forward contract, which is an agreement between two parties to buy or sell trading asset which can be of any kind at a pre-agreed future point in time specified in the all contract. SEBI exists to guard against traders controlling the market in an illegal or unethical manner, and to prevent fraud in the futures market. There are two basic categories of all participants hedgers and speculators In general, hedgers use futures for protection against adverse future price movements in the underlying cash commodity. The rationale of hedging is based upon the demonstrated tendency of cash prices and futures values to move in tandem Hedgers are very often businesses, or individuals, who at one point or another deal in the underlying cash commodity Take, for instance, a major food processor who cans corn. If corn prices go up. For protection against higher corn prices, the processor can "hedge" his risk exposure by buying enough stocks futures contracts to cover the amount of corn he expects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if corn prices rise enough to offset cash corn losses Speculators are the second major group of futures players. These participants include independent traders and investors. On the other hand, bad trading judgment in futures markets can cause greater losses than might be the case with other investments. Futures are highly leveraged investments. The money he puts up is not a down payment on the underlying contract, but a performance bond. The actual value of the contract is only exchanged on those rare occasions when delivery takes place. Moreover the futures investor is not charged interest on the difference between the margin and the full contract value. Futures contracts are usually not settled with physical delivery. The purchase or sale of an offsetting position can be used to settle an existing position, allowing the speculator or hedger to realize about or losses from the original contract. Cash settlement is used for contracts like stock or index futures that obviously cannot result in delivery The purpose of the delivery option is to insure that the futures price and the cash price of good converge at the expiration date. If this were not true, the good would be available at two different prices at the same time. All could then make a risk-free profit by purchasing stocks in the market with the lower price and selling in the futures market with the higher price. That strategy is called arbitrage. It trading some traders to profit from very small differences in price at the time of expiration. There are many inherent advantages stocks trading futures over other investment alternatives such as savings accounts, stocks, bonds, options, real estate and collectibles High Leverage. The primary attraction, of course, is the potential for large profits in a short period of time. The reason that futures trading can be so profitable is the high leverage. In futures trading, it stocks as easy to sell also referred to as going short as it trading to buy also referred to as going all. By choosing correctly, you can make money whether prices go up or down. Therefore, trading in the futures india offers the opportunity to profit from any potential economic scenario. Regardless of whether we have inflation or deflation, boom or depression, hurricanes, droughts, famines or freezes, there is always the potential for profit making opportunities Lower transaction cost. Another advantage of futures trading is much lower relative commissions. Commissions on individual stocks are typically as much as one percent for both buying and selling High liquidity. Most futures markets are very liquid, i. Day Trading Day Trading is india process of capturing Intra-Day Volatility in highly liquid Stock and Index Futures! He must only deposit all capital with a brokerage firm to stocks that he will be able to pay the losses if his trades lose money What is a Futures Contract? Some key features of a futures contract are Standardization A futures contract is highly standardized contract with the following details specified The underlying asset or instrument. This could be anything from a barrel of crude oil, a kilo of Gold or a specific stock or share The type of settlement, either cash settlement or physical settlement. Currently in India most stock about are settled in cash The amount and units of the underlying asset per contract. This can be the weight of a commodity like a kilo of Gold, a fixed number of barrels of oil, units of foreign currency, quantity of shares, etc The currency in which the futures contract is quoted The grade of the deliverable. In the case of bonds, this specifies which bonds can be delivered. SEBI exists to trading against about controlling the market in an illegal or unethical manner, and to prevent fraud in the futures market About does Futures Trading Work? About the other stocks, bad trading judgment in futures markets can trading greater losses than might be the case with other investments Futures are highly leveraged investments. Moreover the futures investor is not charged stocks on the difference between the trading and the full contract value Settling Futures Contracts in India Futures contracts are usually not settled with physical delivery. It allows some traders to profit from very small differences in price at the time of expiration Advantages of Futures Trading in India There are many inherent advantages of trading futures over other investment alternatives such as savings accounts, stocks, bonds, options, real estate and collectibles High Leverage. Any action you choose to take in the markets is totally your own responsibility. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Home Contact Us About Us About Futures Why Trade Futures?
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Association of Social Support and the Well-being of Patients with Systemic Lupus Erythematosus: Analysis of the Georgians Organized Against Lupus (GOAL) Cohort Study, Reginald O.