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What are the benefits of trading in futures?
The benefits of Futures trading include: Traders can leverage the margin trading benefit under which they can buy more units of the underlying asset at a fraction of a cost. This margin essentially serves as a security deposit to cover your losses if your trade does not perform to your expectations.Read more
The benefits of Futures trading include:
Traders can leverage the margin trading benefit under which they can buy more units of the underlying asset at a fraction of a cost. This margin essentially serves as a security deposit to cover your losses if your trade does not perform to your expectations.
See lessYou do not need to take the physical delivery of the assets traded and can conduct all trades on paper.
The futures trading market is highly liquid and active, which means that at any given time, you can find buyers and sellers whenever you wish to conduct a transaction.
The expense ratios, such as commission charges, entry/exit loads, etc., are typically low in the futures trading market.
How does Call Option work?
A call option is a derivative contract that allows option buyers the right or option to buy or not buy an underlying asset at the strike price. Per call options basics regulations of the SEBI, investors who buy a call option are not obligated to exercise the option if the trade means incurring a losRead more
A call option is a derivative contract that allows option buyers the right or option to buy or not buy an underlying asset at the strike price. Per call options basics regulations of the SEBI, investors who buy a call option are not obligated to exercise the option if the trade means incurring a loss. As such, they may choose against purchasing the asset at the strike price. They may also decide when and whether to exercise the option to exit the agreement, but they must do so before the contract expiry period.
See lessWhat are futures contracts in the stock market?
In the stock market, Futures are derivatives contracts under which traders trade underlying assets on exchanges. Under the futures contract, traders must buy or sell the underlying asset on a fixed date, also known as the contract expiration date, at a fixed, predetermined price. Traders can speculaRead more
In the stock market, Futures are derivatives contracts under which traders trade underlying assets on exchanges. Under the futures contract, traders must buy or sell the underlying asset on a fixed date, also known as the contract expiration date, at a fixed, predetermined price. Traders can speculate and set the underlying assets’ prices while entering into the contract. They are obligated to honour the contract rules and buy/sell the asset even if the trade does not pan out per their expectation or speculation on the contract expiry date.
See lessWhat are futures and options in stock market?
In stock market, Futures and Options are derivatives contracts under which traders agree to buy and sell an underlying asset at a fixed date and time in future. A Futures contract is one under which the traders are obligated to buy or sell the underlying asset at a fixed future date, at a fixed futuRead more
In stock market, Futures and Options are derivatives contracts under which traders agree to buy and sell an underlying asset at a fixed date and time in future. A Futures contract is one under which the traders are obligated to buy or sell the underlying asset at a fixed future date, at a fixed future price, irrespective of the asset’s market value on the contract expiration date. Under an options contract, traders have the option and not the obligation to honour the contract. This means they can bow out of the contract if the price of the underlying asset on the contract expiration date is not as expected/speculated. They must, however, forfeit the margin amount paid at the time of entering the contract.
See lessWhat is Futures Trading?
Futures Trading can be defined as the act of trading a derivatives contract featuring underlying assets like shares, currencies, commodities, ETFs, etc. In Futures Trading, traders are obligated to buy or sell the underlying asset on a fixed, predetermined future date, at a fixed, predetermined futuRead more
Futures Trading can be defined as the act of trading a derivatives contract featuring underlying assets like shares, currencies, commodities, ETFs, etc. In Futures Trading, traders are obligated to buy or sell the underlying asset on a fixed, predetermined future date, at a fixed, predetermined future price on the contract expiration date. They are obligated to carry out the trade irrespective of the market value of the underlying asset on the trading date and may incur profits or losses accordingly.
See lessWhat is Options Trading?
Options trading is essentially a trade that involves a derivative contract between a buyer and a seller. This contract gives traders the right or the option, but not the obligation to purchase or sell an underlying asset (stocks, commodities, ETFs, currencies, etc.) at a specific price (called the sRead more
Options trading is essentially a trade that involves a derivative contract between a buyer and a seller. This contract gives traders the right or the option, but not the obligation to purchase or sell an underlying asset (stocks, commodities, ETFs, currencies, etc.) at a specific price (called the strike price) for a predetermined period. Buyer/sellers may exercise the option to exit the option contract on or before the contract maturity period.
See lessWhat factors should I look for while choosing the top mutual funds in India?
It would help if you looked for the following factors while choosing the best mutual funds in India. The funds' performance and returns generated over the last 1, 3, 5 and 10 years. Whether the fund demonstrated stability or volatility during different market cycles The performance of the fund managRead more
It would help if you looked for the following factors while choosing the best mutual funds in India.
The funds’ performance and returns generated over the last 1, 3, 5 and 10 years.
See lessWhether the fund demonstrated stability or volatility during different market cycles
The performance of the fund manager handling the funds and whether the funds’ value has grown or fallen during their management.
The asset allocation of funds and whether it suits your investment style and risks.
Can you recommend a good Beginners guide to mutual funds investment?
There is a lot of data and literature on the internet featuring mutual fund investment guides that beginners can access. You can check websites by brokerage firms and online media and news portals which cover topics like mutual fund investments in great detail. You can also watch videos on popular sRead more
There is a lot of data and literature on the internet featuring mutual fund investment guides that beginners can access. You can check websites by brokerage firms and online media and news portals which cover topics like mutual fund investments in great detail. You can also watch videos on popular streaming websites to understand how mutual fund investments work. If you want a detailed account on mutual fund investments, we recommend you read books such as Comprehensive Beginner’s Guide to create Wealth using Mutual Funds by Gregory Beck, Mutual Fund Investing by Charlie Evans, Indian Mutual Funds for Beginners by Vipin Vats or Mutual Funds-Ladder to Wealth Creation by Vivek K. Negi.
See lessHow often should you review mutual fund investments?
It is good practice to review mutual funds regularly. The frequency of reviews depends on the type of fund you invest in and its investment tenure. Typically, you should review your mid and long-term mutual fund investments annually or every six months. Note that evaluating your mutual funds at shorRead more
It is good practice to review mutual funds regularly. The frequency of reviews depends on the type of fund you invest in and its investment tenure. Typically, you should review your mid and long-term mutual fund investments annually or every six months. Note that evaluating your mutual funds at shorter intervals might lead to inaccurate insights and cause you to make impulsive decisions regarding your investment.
See lessWhat are the ways to optimise mutual funds returns?
There are several ways to optimise mutual fund returns as under: Always opt for direct funds over regular MFs. These plans generally fetch you 1% to 1.5% higher returns as compared to regular mutual funds. This is because you avoid paying any fees or commission, resulting in more of your money beingRead more
There are several ways to optimise mutual fund returns as under:
Always opt for direct funds over regular MFs. These plans generally fetch you 1% to 1.5% higher returns as compared to regular mutual funds. This is because you avoid paying any fees or commission, resulting in more of your money being invested.
See lessOpt for SIPs over lumpsum investments. This allows you to start small, slowly increase your investments over time and reap the benefits of compounding interest.
It is also wise to diversify your investments. This ensures that your losses, if any, are kept to a minimum in case of any market fluctuations.