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3 Easy steps to trade in F&O (Equity Future Derivatives)

Published on Tuesday, December 30, 2014 by Chittorgarh.com Team | Modified on Friday, November 1, 2019

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How to start F&O trading? is the challenge most people faces when they enters in to stock market. In this article I will share the information about how to trade Equity Futures and Options in few easy steps.

Let's begin with few fundamental questions asked about F&O trading. Later I will talk about easy steps to trade in F&O.

Frequently Asked Questions about F&O Trading in India

  1. What is Derivative (Futures and Options) Trading?

    Like share trading in the cash segment (buy & sell shares), derivative is another kind of trading instrument. They are special contracts whose value derives from an underlying security.

    Futures and Options (F&O) are two types of derivatives available for the trading in India stock markets.

    In futures trading, trader takes the buy/sell positions in an index (i.e. NIFTY) or a stock (i.e. Reliance) contract. 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 position), trader makes profit. In case the price movement is adverse, trader incurs losses.

    Few fundamental things you should know about F&O trading:

    • The F&O segment accounts for most trading across stock exchanges in India. They are the most popular trading instruments worldwide.
    • To take the buy/sell position on index/stock futures, a trader has to place certain % of order value as margin. Which mean if a trader buy future contract worth of ₹4 Lakhs, he pays just around 10% cash to broker (known as margin money) which is ₹40,000. This gives the opportunity to trade more with little cash.
    • Profit or losses are calculated every day until the trader sells the contract or it expires.
    • Margin money is calculated every day. Which means if the trader doesn't have enough cash (margin money) in his account (on any day when trader is holding the position), he has to deposit the margin money to broker or broker can sell his F&O contract and recover the money.
    • Unlike stocks; derivative has an expiry. Which means if trader do not sell until a pre-decided expiry date, the contract is expired and profit or loss is shared with you by the broker.
    • Future Trading can be done on the indices (Nifty, Sensex etc). NIFTY Futures are among the most traded futures contracts in India.
  2. Why should I trade in F&O?

    • With futures trading, trader can leverage on trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.
    • Settlements are done on daily basis (MTM) until the contract expires. Profits/losses are calculated (and credited/debited in traders account) on end of the day every day.
    • Demat account is not needed for F&O trading. All futures transactions are cash settled. Contract positions are hold by the exchanges until they expire.
    • The F&O positions are carrying forward to next day and can be continued till the expiry of the respective contract and squared off any time during the contract life. This is different from 'Margin Trading' where trader has to close the position the same day.
  3. What are different types of Equity Futures & Options available in India?

    In the Futures and Options segment at NSE and BSE; trading is available in mainly two types of contracts:

    1. Index Futures & Options

      At NSE; Index F&O are available for 6 indices. This includes; CNX Nifty Index, CNX IT index, Bank Nifty Index and Nifty Midcap 50 index.

      • CNX Nifty Index (based on the Nifty index.)
      • BANK Nifty Index (based on the BANK NIFTY index)
      • CNXIT Index (based on the CNX IT index)
      • Nifty Midcap 50 Index ( based on the Nifty Midcap 50 index)
      • CNX Infrastructure Index (based on the CNX Infrastructure index)
      • CNX PSE Index (based on the CNX PSE index)

      Similar way BSE offers trading in future for underlying assets as following indexes:

      • SENSEX
      • BSE100
      • BSETECK
      • BANKEX
    2. Futures & Options on Individual Securities

      Stock exchanges offer F&O contracts for individual scripts (i.e. Reliance, TCS etc.); which are traded in the Capital Market segment of the Exchange.

      NSE offers F&O trading in 135 securities stipulated by the SEBI. The stock exchange defines the characteristics of the futures contract such as the underlying security, market lot, and the maturity date of the contract.

  4. Why all stocks are not available for F&O trading?

    F&O contracts of individual companies are not available for all the companies listed in stock exchanges. Only those stocks, which meet the criteria on liquidity and volume, have been considered for futures trading. Or companies whose shares have high liquidity and volume of trades at stock exchanges are eligible for F&O trading.

    Stock exchange decides which company's F&O contracts can be traded at the exchange.

  5. What does 'Square off' means in future trading?

    'Square off' means selling a future position.

    For example; if you buy 1 lot of NIFTY future on 20th Aug 2014 and decide to sell it on 24th Aug 2014; you actually square off your future position.

  6. Can I sell (or square off) the F&O Contract before expiry date?

    Yes, you can sell the contract (or square off the open position) anytime before the expiry date. If you do not sell the contract by expiry date; the contract get expired and profit / loss is shared with you.

  7. What does Cover Order' mean?

    The order place to sell square off an open future position is called cover order.

  8. What are different types are settlements for Futures?

    Future contracts are settled in two ways:

    1. Daily Mark to Market (MTM) Settlement

      The profits/losses are calculated on daily basis at the end of the day. MTM goes until the open position is closed (square off or sell). The next question and an example in the later part of this article will explain you MTM process in detail.

    2. Final Settlement

      On the expiry of the futures contracts; the exchange marks all positions of a CM to the final settlement price and the resulting profit / loss is settled in cash.

  9. What is Mark to Market (MTM) in Future Trading?

    Note: MTM is the most important process in F&O trading and very little difficult to understand for conventional stock market investors who buy and sell shares for long term.

    At the end of every trading day; the open future contracts are automatically 'marked to market' to the daily settlement price. This means; 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 takes place at the closing price of the day. The base price of today is compared with the closing price of the previous day and difference is cash settled.

    i.e. For 1 lot of NIFTY Futures (50 shares) if

    • Previous Day Last Price (Brought Forward Price) = ₹7629.55
    • Today Last Price (Carry Forward Price) = ₹7678.00

    Net Profit = (7678.00-7629.55)*50 = ₹2422.50


    • After the profit/loss calculated; the future position is Carry Forward to next day.
    • The same process of MTM repeats and profit/losses are calculated again every day until the position is squared off or it expires.
    • Every day is like a fresh position until contract is sold or expires.
    • Through the profit/loss are credited/debited on daily basis in traders account; the brokerages / fees / taxes are only charged at the time of buying and selling future contract.
    • MTM is a very important concept and very important to understand for future stock traders.
    • End of Day EOD MTM is mandatory for future contracts.
    • The sample F&O Day Bills for couple of days to understand this concept.
  10. Why different contracts are available for same index or stock? Explain the F&O Trading Cycle? What is F&O Contract life?

    Equity futures & options are traded in 3 'trading cycles'. The 3 month trading cycle includes the near month (one), the next month (two) and the far month (three).

    i.e. If current month is Aug 2014; the contracts available for NIFTY Futures are as below:

    Buy Order Entry - NSE Future (NIFTY)

    The contract life of the F&O contract is until the last Thursday of the expiry month. If the last Thursday is a trading holiday, then the expiry day is the previous trading day.

    For example; in the above table; 28th Aug 2014 is the expiry of this month's contract. The contract life of this future contract is from today to 28th Aug 2014.

    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.e., one near month, one mid month and one far month duration respectively.

  11. What is 'Expiry day' for F&O contract?

    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.

  12. What is 'Margin' amount in future trading?

    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. The margin amount usually varies between 5 to 15% and usually decided by the exchange.

    Note: This feature (only paying small margin money) makes F&O trading most attractive because of high leverage. You can make a larger profit (or loss) with a comparatively very small amount of capital using F&O trading.

    Margin % differs from stock to stock based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective share besides the general market conditions.

    Normally index futures have less margin than the stock futures due to comparatively less volatile.

    [Important Note] The margin amount usually recalculated daily and may change during the life of the contract. It depends on the volatility in the market, script price and volume of trade. It is possible that when bought the future position; the margin was 10%; but later on due to the increased volatility in the prices, the margin percentage is increased to 15%.

    In that scenario, the 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. Thus It is advisable to keep higher allocation to safeguard the open position from such events.

  13. How is futures trading different from margin trading?

    While buy/sell transactions in margin segment have to be squared off on the same day, buy/sell position in the futures segment can be continued till the expiry of the respective contract and squared off any time during the contract life.

    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 per 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. You can even buy/sell indices like NIFTY in case of futures in NSE, whereas in case of margin, you can take positions only in stocks.

Trade in Equity Futures in 3 Easy Steps:

Below example demonstrate how to buy and sell one lot of NIFTY Future.

Step 1: Buy Equity Future

Assuming that you have an account with a share broker in India to trade in F&O segment; the first step is to buy (or sell in case of short-selling futures) a future contract. You can visit NSE or BSE websites to check the available future contracts for indexes as well as securities.

In this example; we will buy 1 lot of NIFTY ( 50 shares). Note that you can buy/sell the F&O contracts only in lots. The lot size is different from contract to contract.

Placing a buy order is pretty simple and similar to buying shares for delivery.

Below screenshot shows that we are placing an order to by 1 lot (50 shares) of NIFTY Futures at the price of ₹7643.90.

Buy Order Entry - NSE Future (NIFTY)

In above 'buy order entry' form some of the important fields are:

  • Exchange segment = NFO (NSE F&O segment)
  • Inst Name (Instrument Name) = FUTIDX (Future Index)
  • Symbol = NIFTY
  • Expiry = 25Sep2014

Step 2: Hold Equity Future

You hold the equity future contract until you sell it or it expires on predefined expiry day (in our case its 25th Sept 2014). In this example we will hold the F&O contract for 7 days and then sell it.

For each day we hold the contract, the broker send a 'Future & Options Day Bill' along with few other statements including margin statement, client ledger detail, contract note etc.

The F&O day bill provides the accounting information of the contract on daily basis. Let's go through the F&O day bills for each day and discuss the accounting:

Day 1:

  • Buy Price (NIFTY): 7643.90
  • Close Price (NIFTY): 7629.55

Below is the Future & Options Day Bill for end of day 1, the day when we bought the contract. Let's check few useful fields in this.

  • Brokerage: The ₹20 (as I placed this order though Zerodha, The flat fee discount broker) is debited by the broker as brokerage charge. Brokerage is charged on the day when we buy the F&O contract and the day when we sell it.
  • Regular Trade: This is used for buy & sell transaction. It shows which F&O script you bought, its expiry date, quantity, Rate at which you bought it and total amount (₹3,82,195).
    Note: Though total debit amount is ₹3.82 Lakhs; it doesn't mean you have to pay this much amount. It's just for accounting. You pay only margin amount to the broker for this trade, which is around 10% of total amount (i.e. ₹38,219).
  • Carry Forward: As we decided to hold the position for next few days; our F&O contract will be carry forward. The 'Carry Forward' value of the contract is decided by the exchange at the end of the trading day. In our case it's ₹7629.55 (NIFTY actually fall on day 1). Based on this rate; the total credit to our account is ₹381477.50.
  • Net (Profit / Loss): Day 1 accounting shows the loss of ₹717.50. Various taxes and charges (applicable on buy transaction) are added to our losses and net due to us is now ₹787.97. This is the amount broker will take from our account by end of the day.
Day Bill - NSE F&O Trading [Day 1]

Contract Note - Buy NIFTY F&O

For buy and sell transactions of F&O contract, broker send a contract note. 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.

Contract Note Buy Order - NSE Future (NIFTY)

Client Account Ledger Details:

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 by broker on day 1.

Client Account Ledger Detail - NSE Future (NIFTY)

Day 2 (Market Close on Saturday):

On day 1 I decided to carry forward the F&O position. But on day 2 the market is closed as its Saturday. Note that the position is now name as 'Brought Forward'.

  • Brought Forward: The F&O position which is brought forward from previous day.
  • Brought Forward Price (NIFTY): 7629.55
  • Close Price (NIFTY): NA
Day Bill - NSE F&O Trading [Day 2]

Note: The above day bill doesn't have any 'Carry Forward' position as the market was closed.

Day 3 (Market Close on Sunday):

  • Brought Forward Price (NIFTY): 7629.55
  • Close Price (NIFTY): NA
Day Bill - NSE F&O Trading [Day 3]

Day 4

  • Brought Forward Price (NIFTY): ₹7629.55
  • Close Price (NIFTY): ₹7678.00

This is the first trading day (Monday) for NIFTY future and it went up around 50 points. Now let's check the accounting for Day 4:

  • Brought Forward: The contract values from last day. It's similar to the 'Carry Forward' row in last trading day's day bill.
  • Carry Forward: On day forward we decided to carry forward the F&O contract (or decided not to sell it). NIFTY futures went up and NIFTY Sept Contract, which we are holding went up ₹48.45 (closed at ₹7678.00). This way end of the day the amount credited to our account is ₹3,83,900 and we made profit of ₹2422.

The net profit of ₹2422 is credited to the account.

Day Bill - NSE F&O Trading [Day 4]

Day 5

  • Brought Forward Price (NIFTY): ₹7678.00
  • Close Price (NIFTY): ₹7781.70

Similar to previous day, we decided to carry forward the future contract. The price went up by ₹103.7 and we made decent profit of ₹5185.00.

Day Bill - NSE F&O Trading [Day 5]

Day 6

  • Brought Forward Price (NIFTY): ₹7781.70
  • Close Price (NIFTY): ₹7779.55

Once again we decided to carry forward the contract. The price remain flat and actually went down by ₹2.15, loss of ₹107.50.

Day Bill - NSE F&O Trading [Day 6]

Step 3: Sell Equity Future

On day 7 I decided to sell the contract for ₹7800.00. Here is my transaction:

Sell Order Entry - NSE Future (NIFTY)

Day 7

  • Brought Forward Price (NIFTY): ₹7779.55
  • Sell Price (NIFTY): ₹7800.00

Below is the Future & Options Day Bill from day 7, the day when we sold the contract. Let's check it:

  • Brokerage: The ₹20 is charged by the broker as brokerage charge. This is similar to how we paid brokerage on day 1 when we buy the F&O Contract.
  • Regular Trade: The sell transaction is captured here.
  • Net (Profit / Loss): Day 7 accounting shows the profit of ₹1022.50. After deducting taxes and brokerage; we made net profit of ₹947.15. This is the amount broker will pay us on Day 7.
Day Bill - NSE F&O Trading [Day 7]

Summary of Gross Profit / Loss

Day Net Profit / Loss (in ₹)
Day 1 -787.97
Day 2 0
Day 3 0
Day 4 +2422.50
Day 5 +5185.00
Day 6 -107.50
Day 7 +947.15
Total Profit / Loss +7659.18

Brokerage Paid

Day Brokerage Paid
Day 1 (Buy) ₹20
Day 7 (Sell) ₹20

Choosing Right Broker for F&O Trading

It's very important to choose the right broker to trade F&O for multiple reasons including; easy transactions, free software, low brokerage and low transaction changers. We recommend ProStocks.

ProStocks, F&O Trading Account

ProStocks Logo

ProStocks, an online stock broker based in Mumbai is among the popular broker. They provide low cost stock and currency derivatives trading at BSE and NSE.

UpStox has 2 pricing plans:

  • Unlimited Trading Plan - ₹899 per month for unlimited Equity and Equity F&O trading in an exchange Or ₹499 per month for unlimited Currency F&O Trading.
  • Flat Rate Trading - ₹15 per trade in any exchange, any segment or any size trade (irrespective to the number of lots in it).

Key features:

  • Demat account is optional for F&O traders
  • Free trading & demat account
  • Zero AMC Demat Account with ₹1000 one time deposit.
  • Lowest Transaction Charges, Guaranteed.
  • Low call&trade charges - ₹10 per executed order.
  • Free Trading Terminal, Website and Mobile app.
  • Excellent charts and real time data.

Tips for a beginner in F&O trading

  • F&O trading is about predicting the future, which is not easy in any way, shape, or form.
  • F&O trading is very high-risk financial instrument. More risk you take while F&O trading, more rewards you will get. At the same time, the losses are also huge
  • The concept of margin money (or only paying small money upfront for large positions) makes F&O trading most attractive. You can make a larger profit (or loss) with a comparatively very small amount of capital using F&O trading.
  • If enough margin money is not available in your account with the broker; most brokers closes the position automatically without informing you. Especially at the time of sudden falls in stock markets, short of margin may cause huge losses.

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Shashwata Roy
78. Shashwata Roy  Oct 20, 2019 19:20 Reply
Can I buy a future at 3:20 p.m. and sell it at 3:25 p.m. on the same day without giving any penalty for extra charges as it happens in case of delivery of stocks
Shashwata Roy
77. Shashwata Roy  Oct 20, 2019 19:15 Reply
If I buy a future contract at 3:20 p.m. and sale it at 3:25 p.m. on the same day then any penalty will be given by me or I can do it without any penalty and extra charges as it happens in case of delivery of stocks.
76. RR  Aug 17, 2019 17:04 Reply
Clearly explained about Feature, anybody can understand easily
Ramakant Vyas
75. Ramakant Vyas  Apr 19, 2019 13:35 Reply
Thank you for such a informative article.
Manas Sahoo
74. Manas Sahoo  Jan 25, 2019 23:41 Reply

Beautifully Explained.
But one small clarification required as some one already asked it also above.
If the value is worth 381000, and we need 10% as margin, do i need to have the complete amount 3.8 lakhs in my account ???
Team Chittorgarh.com
74.1. Team Chittorgarh.com  Jan 26, 2019 10:49
Hi Mr Manas,

If a trade require 10% margin, it means you just need 10% to total value in your trading account. As in your example the value of trader is Rs 3,81,000. If this trade require 10% margin, you need only Rs 38,100 in your account.

Hope this help.
73. shiva  Apr 6, 2017 16:55 Reply
1.In the above example on step 1 you brought 1 lot (50 shares) of NIFTY Futures at the price of Rs 7643.90.
so how much you paid here
is it only 7643.90 or

50*7643.90 =382,195

or some % of margin money say 10% of 382,195

which is 38219
2. suppose you brought for 38219 and you sold on the same day where nifty fell 100 points. So how much you loose.

which 37719.50

so loss is 38219 - 37719.50 = 500 ( excluding tax)

is that correct or you have to pay 377195..?

Abhishek Verma
73.1. Abhishek Verma  Dec 19, 2018 13:18
Your loss will be of Rs 5000 (50*100), so you will get 38219-5000= Rs 33219 but to your trading account if you sell it same day.
72. Prateek  Jun 15, 2017 19:50 Reply
Good explanation. But I have a doubt. If you check out the zerodha brokerage calculator since you are using zerodha,
Buy - 7643.9
Sell - 7800
Quantity -50
Net profit is 7700.19 rs after removing all brokerage and transaction charges . How did u get 7659.18 rs ? where did the remaining 41.01 rs money is lost?
72.1. Administrator  Nov 23, 2018 08:34
This is because we closed the position in 7 days. Zerodha Calculator shows the profit/loss if you close the position same day.

Note that in case of Futures, the profits and losses are calculated on "daily basis" and credit/debit in your trading account. Its like a new trade every day for 7 consecutive trading sessions.

Check the table above where we calculated Net Profit of Rs 7659.18.
71. VINOD KUMAR PUTTA  Oct 16, 2018 10:37 Reply
Good information for beginners
Prakash Purandare
70. Prakash Purandare  Sep 6, 2018 18:40 Reply
Very useful and easy to understand.
Manickam Veeramuthu
69. Manickam Veeramuthu  Sep 6, 2018 12:47 Reply
Excellent very good information to beginer
Chandan sinha
68. Chandan sinha  Aug 28, 2018 19:45 Reply
Super information about F&O trading for new trader
67. Dillip  Aug 13, 2018 13:07 Reply
Excellent, good information for bigners
66. Y V R  Jul 28, 2018 16:19 Reply
Nice presentation. Even a layman can understand.
Rejeev Shamsudeen
65. Rejeev Shamsudeen  Jun 3, 2018 02:59 Reply
Really easy to understand.
Thank you for your article
64. sashi  Feb 22, 2018 15:23 Reply
After 7 days the amount investor gets is 7659 rs. right?
Team Chittorgarh.com
64.1. Team Chittorgarh.com  Apr 6, 2018 15:12
The 7659.18 is the total profits you got. In case of Futures, the profit/loss is transferred to your trading account on daily basis. For example; first day the broker will deduct Rs 787.97 from your trading account,.
63. ANAND DEV  Mar 30, 2018 00:00 Reply
Beautifully explained.just tel me whether v can set the rate at which the system can automatically sell the contract.kindly send me some screen shots of orders placed thru axis direct window as i am using that only
Team Chittorgarh.com
63.1. Team Chittorgarh.com  Apr 6, 2018 15:08
Hi Anand,

Yes you could do this by placing GTC order (Good Till Cancelled). 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.

Note that only few brokers provide GTC facility. Discount brokers like Zerodha, RKSV or ProStocks do not provide GTC orders.
62. Bond  Mar 8, 2018 13:44 Reply
great detail
Rohit Pareek
61. Rohit Pareek  Feb 1, 2018 15:48 Reply
Very useful article. Before reading this article, I knew nothing about F&O, but after reading the whole article I gained so much information, which, I think is useful for a beginner. Thank you very much for making it simple and easy.
60. hitehs  Jan 21, 2018 13:23 Reply
helpfull information...well written
59. Rajan  Dec 9, 2017 20:51 Reply
RELIANCE industries .Suppose I have 1000 shares of Reliance in my account. THERE IS A PREMIUM OF approx RS 5 in JAN 2018 and about Rs 9 in FEB 2018 over the cash price.
I would like to know through the accounting entries how i can make monety selling futures.
Please illustrate with accounting entries. Thank you
58. Bijoy  Dec 6, 2017 23:43 Reply
This is the best learning for me in futures
57. C SREENIVAASAN  Nov 19, 2017 19:41 Reply
Useful information explained neatly and clearly
56. sriraman  Nov 18, 2017 22:55 Reply
very informative
55. Arti  Nov 2, 2017 21:34 Reply
Incredible... Thank you so much for the detailed information..!!
54. Vijay  Sep 29, 2017 13:18 Reply
Everything was well explained but one.
How much Bank/account balance one should have at time of placing buy or sell order in future
Ashok Kumar Dhabhai
53. Ashok Kumar Dhabhai  Sep 2, 2017 18:16 Reply
Dera Mr Sathi,
Thanx for explaining the future trading in such a simple but effective methods. The examples given has cleared all doubts. Will be kind enough to cover option trading (Put and call options), implications and meaning of terms like open interest. Inference on increase/ decrease of open position, put call ratios(PCR) etc.
Ashok kumar Dhabai
Unni Neithilath
52. Unni Neithilath  Jul 31, 2017 18:43 Reply
Well explained
51. Madhuri  Jul 27, 2017 16:11 Reply
Nicely explained. Thanks for information.

I have one question as we have to pay only 10%amount but it is necessary that whole amount should be present e.g 3,80,000 in my account?
Gopal A
50. Gopal A  Jun 21, 2017 18:48 Reply
Can I sell holding f&o share first at higher value and buy at lower rate at same day.
mahender goriganti
49. mahender goriganti  Jun 21, 2017 02:08 Reply
lease explain when you said the broker shares loss /Profit if the contract expires and closed. be specific to % , how for both profits and loss.
48. RAMACHANDRAN  Jun 4, 2017 19:23 Reply
Very clearly explained.
47. pvchander  Jun 2, 2017 20:57 Reply
nicely explained...tq u
46. pvchander  Jun 2, 2017 20:56 Reply
nice explained. never read before ..tq u so much.
45. P.V.SATHI  May 19, 2017 22:41 Reply
Instead of Margin, I had typed, marin, Kindly excuse me
44. PV.SATI  May 19, 2017 22:18 Reply
How Marin Maintenance is calculated?When we keep 25% of the Marin, along with normal Marin, will it be alight?
Surya Prakash N Jha
43. Surya Prakash N Jha  Mar 25, 2017 01:58 Reply
Spectacular, Only an learned team or a person could write in so simple words about the complex thing. Wonderfully laid-out with good examples.

Thanking You.
Happy Trading.
42. P.Vasuhi  Mar 12, 2017 10:38 Reply
Excellent information about F&O.
41. Upendra  Jan 5, 2017 18:26 Reply
Thank you sir, for sharing this excellent and valuable information.
40. MOHAN  Dec 30, 2016 14:24 Reply
Super news for new Future segment traders
sugandh sisodia
39. sugandh sisodia  Dec 12, 2016 12:50 Reply
Very Well written..easy to understand.m starting with FnO thanx :)
38. P.V.SATHI  Oct 29, 2016 12:02 Reply
In your F&O calculation for 7 days, How much I should pay to the Broker every day, to keep the same original contract?
i.e. starting from Monday to saturday (with fresh example).
Kindly give 3 different examples, with different Price, Up/down rate, etc.
What is the SAFE Margin money to keep with Broker?
Thank U
Mukesh kothari
38.1. Mukesh kothari  Nov 16, 2016 01:00
Hi Mr Sathi,

1. You pay brokerage only when buying & selling (or square-off). Broker doesn''t charge anything to carry forward your derivatives positions to next day.

So for example, you hold the contract for 7 trading days, you will pay Rs 20 brokerage on the day 1 (buy transaction) and Rs 20 on day 8 (sell transaction).

2. The safest margin money you can keep with broker is 100% margin as you do in case of equity delivery :)

The margin changes every day based on where the market stands. If market falls significantly the margin increases. You have to keep a close eye on the daily margin report.

Hope this helps.

37. pradeep  Oct 27, 2016 09:23 Reply
one of the best explanation I ever read .........
36. Manikanta  Oct 23, 2016 23:32 Reply
I have just read and understand this topic.so, thanks for providing valuable information about futures and options in share market.
35. Sivamani  Oct 14, 2016 15:36 Reply
Sir, Can you please explain option trading also, like you explain future trading in this article with pictures?

Also, something on strike prices for Buy and Put in options. please send it to my email. thanks so much in advance
34. Anil  Sep 24, 2016 13:10 Reply
Very easy to understand explanation. Many Thanks.
33. Sanjeev  Sep 22, 2016 18:41 Reply
Beautifully explained. Cleared many doubts in my first reading only. 👍
Nishi Goel
32. Nishi Goel  Jun 15, 2016 19:32 Reply
thanks for your wounderful article on F&O.
Please explain ''SPAN Margin'' and ''Exposure Margin'' in ''Client Account Ledger Details'' at DAY1.
31. Bhavik  Jun 11, 2016 12:31 Reply
Very well explained. I just have one doubt. In the illustration, on day 7, when the contract was sold at 7800.0, it meant that the NIFTY had 7800.0 value in the market that day. correct? Or is it possible to sell the contract with next month''s price?
31.1. Xyz  Aug 11, 2016 00:03
No it doesnt mean that closing price was 7800.
Suppose during market hours @1.30 pm if we want to sell our position than at that time the price was 7800 so we sold it at 7800. You can buy or sell your positions at any time during the market hours.
Hope this cleara your doubt.
Happy trading ;)
Keep minting money.
30. Suresh  May 15, 2016 12:14 Reply
Excellent. Very lucid. Best Wishes.
29. AKSSN  May 1, 2016 10:13 Reply
Beautifully explained. Very Good.

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