How does futures trading work?
To buy or sell futures, the investor is required to place a certain percentage of the order value as margin. In futures trading, the investor uses leverage to buy or sell more of the security than what he/she could have taken in the regular cash market.
How is futures trading different from margin trading?
In a margin transaction, the positions are squared off the very same day whereas, in futures trading, the positions can be held until the expiry of the contract. In an intraday margin transaction, the investor has the option of converting his ...
How is options trading different from trading futures?
In the case of futures trading, the buyer and seller have unlimited profit potential as well as loss potential. Whereas in options, the buyer has unlimited profit potential with limited downside, and the seller has limited profit potential and ...
What is a futures contract?
A futures contract is an agreement between two parties to buy or sell an asset (Stocks, Indices, Currencies or Commodities) at a certain time in the future for a certain price. To make trading possible, the exchange specifies certain standardized ...
Is there a limit on my futures order size on NSE?
Yes, the futures order has two criteria that need to be met: 1) Price Limit – In the case of stock futures, the price has to be within the range of +/-20% of the previous trading day’s closing price. In the case of index futures, the price has to be ...
What is FYERS RMS policy for trading?
RMS policy on options selling OTM Strikes beyond a certain range can become extremely illiquid and can cause freak trades due to the wide bid/offer spreads. Therefore, as per our RMS policy, a restriction has been placed for option selling outside ...