Name Two Types Of Risk Associated With Stock Index Futures

Hello Friends Today we will discuss Name Two Types Of Risk Associated With Stock Index Futures. Also we discuss details  Advantages and Disadvantages of  Futures Trading. Future Trading Rules regulation are totally different. 

So You have to learn details Information about it.

Know the Advantages and Disadvantages of futures trading.

In the cash market, you can trade in any of the shares in NSE & BSE.

But options and futures trading only allow you to trade only in derivatives stocks.

I have given the derivatives stock list below.

 

Derivatives Stock Lot Size

In the cash market, you are trading shares according to your capital. Someone may have bought ten shares according to his ability, someone 50, someone or a thousand Qty.

But in futures trading, you have to buy shares a lot. However, the lot size is different in each share.

Such as SBIN future lot size 3000 qty

Bata India future lot size 750 qty

So to work in the future you have to work with the full lot size.

The person who has the ability to buy 50 shares in the cash market, has never been able to buy thousands of shares at once.

As a result, those who have very little capital will have difficulty working in the future.

Derivatives Stock Expiry

You can hold on to the cash stock market as long as you like.

Contact Basis shares are bought and sold in options and futures. And their contact period is 30 days.

So derivatives shares have a specific expiry date. You must sell all shares within that expiry date. You are in profit or you are at a loss. When you buy or sell any stock in the future, in their order box you can check the expiry date of this Particular Stock.

If you do not sell the shares you bought in the feature within the expiry date, it will be auto square off and you may have to pay a large penalty.

 

Short Selling on Future Trading

The best thing about futures and options trading is that you can do both.

Buy to sell & sell to buy. If you are buying shares in the cash market, you can keep the shares as long as you like.

But if you are short selling then you have to square off in Intraday. Features and options trading allows you to sell shares and hold until the expiry date.

If you want to do options trading, you need to know Option Chain (Equity Derivatives) Analysis.

You are Reading Name Two Types Of Risk Associated With Stock Index Futures

Derivatives Stock Ban Issue

Derivatives shares contain some news, meetings, etc. every day.

And as a result, the stock is much more volatile, meaning that if a derivatives stock fluctuates above 10%, the stock is likely to be banned the next day.

And as long as there is a ban, you cannot trade futures or options for that stock.

Of course, you can trade in the cash market.

 

Margin in Future Trading

In the cash market if you are buying 1000 shares at once, then you have to make the full payment.

 But You will get a margin in future trading. And with that margin, you can buy Future lot.

However, keep in mind that if for some reason the amount of losses in the future exceeds the margin money, then all your shares will be auto-square off.

So you always have to keep in mind the number of losses when the margin comes close to the money. Before that, you need to deposit money in the Demat account.

You are Reading Name Two Types Of Risk Associated With Stock Index Futures

Sr. No.	Security Code	Security Name	Asset Code	Market Lot
1	541153	Bandhan Bank Limited	BDBK	1800
2	540777	HDFC LIFE INSURANCE COMPANY LIMITED	HDLF	1100
3	540133	ICICI Prudential Life Insurance Company Limited	ICLF	1500
4	540065	RBL Bank Limited	RBLB	2900
5	539957	Mahanagar Gas Limited	MNGL	600
6	539448	InterGlobe Aviation Limited	INAL	500
7	539437	IDFC FIRST BANK LIMITED	IDBL	9500
8	505537	ZEE ENTER	ZEEL	3000
9	531642	Marico Limited	MARI	2000
10	535789	INDIABULLS HOUSING FINANCE LIMITED	IBHF	3100
11	507685	WIPRO LTD.	WIPR	1600
12	534816	Bharti Infratel Limited	INFR	2800
13	533519	L&T FINANCE HOLDINGS LIMITED	LNTF	8924
14	533398	MUTHOOT FINANCE LIMITED	MTFL	750
15	533278	Coal India Limited	COAL	4200
16	500300	GRASIM INDUS	GRSM	475
17	533155	Jubilant Foodworks Limited	JBFW	250
18	533150	Godrej Properties Limited	GPRL	650
19	532321	Cadila Healthcare Ltd.	CADL	2200
20	532978	Bajaj Finserv Limited	BAJF	125
21	532977	Bajaj Auto Limited	BAJT	250
22	532955	REC LIMITED	RECL	6000
23	500302	Piramal Enterprises Limited	PREL	275
24	500830	Colgate-Palmolive (India) Ltd.,	COLG	350
25	532921	Adani Ports and Special Economic Zone Lt	MPSL	1250
26	532898	POWER GRID CORPORATION OF INDIA LIMITED	PGCL	4000
27	532868	DLF LIMITED	DLFL	3300
28	524715	Sun Pharmaceutical Industries Ltd.	SUNP	1400
29	532827	Page Industries Ltd.	PAGE	30
30	532822	VODAFONE IDEA  LIMITED	IDEA	70000
31	532819	MINDTREE LTD	MIND	400
32	532810	Power Finance Corporation Ltd	PFCL	6200
33	532779	TORRENT POWER LIMITED	TORP	1500
34	532777	Info Edge (India) Ltd.	NAUK	125
35	532432	UNITD SPR	UNSL	1250
36	532755	Tech Mahindra Limited	TECM	600
37	532754	GMR Infrastructure Limited	GMRI	22500
38	532733	SUN TV NETWORK LIMITED	SUNT	1500
39	532720	Mahindra & Mahindra Financial Services L	MFSL	4000
40	500325	Reliance Industries Ltd	RELI	250
41	532689	PVR Ltd.	PVRL	407
42	532555	NTPC LTD	NTPC	5700
43	532541	NIIT TECHNO	NIIT	375
44	532540	TCS LTD.	TCSL	300
45	532538	ULTRATECH CM	ULCL	100
46	532523	BIOCON LTD.	BIOC	2300
47	532522	PETRONET LNG	PLNG	3000
48	532514	Indraprashta  Gas Ltd.	INGL	1375
49	532500	MARUTISUZUKI	MARU	100
50	532488	Divi’s Laboratories Ltd.	DIVI	200
51	532483	CANARA BANK	CANB	5400
52	532478	United Breweries Ltd.	UBRL	700
53	532461	Punjab National Bank	PNBK	16000
54	532454	Bharti Airtel  Ltd.	BHRT	1851
55	532424	Godrej Consumer Products Ltd.	GCPL	1000
56	532343	TVS MOTOR L	TMCL	1400
57	532296	Glenmark Pharmaceuticals ltd	GLPL	1150
58	532286	Jindal Steel & Power Ltd	JSPL	2500
59	532281	HCL TECHNO	HCLT	700
60	532215	AXIS Bank Ltd.	AXIS	1200
61	532187	IndusInd Bank Ltd.	IIBK	900
62	532174	ICICI Bank Ltd.	ICIC	1375
63	532155	GAIL INDIA	GAIL	6100
64	532134	Bank Of Baroda	BOBL	11700
65	531344	CONTAIN CORP	CCOI	1563
66	531213	Manappuram Finance Ltd	MANF	6000
67	530965	INDIAN OIL C	IOCL	6500
68	500180	HDFC Bank Ltd.	HDBK	550
69	500228	JSW SL	JSWL	1350
70	524804	Aurobindo Pharma Ltd.	AUPL	650
71	500253	Lic Housing Finance Ltd.	LICH	2000
72	512599	ADANI ENTER	ADEL	1000
73	500034	BAJAJ AUTO F	BAFL	125
74	500469	Federal Bank Ltd.	FEDB	10000
75	500420	Torrent Pharmaceuticals Ltd.	TRPL	250
76	500096	DABUR INDIA	DABU	1250
77	517354	Havells India Limited	HAIL	500
78	500331	Pidilite Industries Ltd.	PIDI	500
79	500257	Lupin Ltd	LUPL	850
80	517334	Motherson Sumi Systems Ltd.,	MSSL	3500
81	500209	Infosys Ltd	INFY	600
82	500049	BHARAT ELECT	BELL	3800
83	532234	National Aluminium Co. Ltd.,	NALC	17000
84	500103	Bharat Heavy Electricals Ltd.,	BHEL	10500
85	500113	STEEL AUTHOR	SAIL	9500
86	500547	BHARAT PETRO	BPCL	1800
87	500247	Kotak Mahindra Bank Ltd.	KOTB	400
88	511243	CHOL INV FN	CIFL	1250
89	511218	SHRIRAM TRAN	SHTF	400
90	500271	Max Financial Services Limited	MXFS	650
91	509480	Berger Paints India Ltd	BRGP	1100
92	503806	SRF Ltd.,	SRFL	125
93	500124	DR.REDDY’S L	DRRL	125
94	500425	Ambuja Cements Ltd.	AMBC	3000
95	505200	Eicher Motors Ltd.	EMLD	350
96	512070	UPL Limited	UPHL	1300
97	500387	SHREE CEMENT	SHCM	25
98	500182	Hero Motocorp Limited	HERO	300
99	500087	Cipla Ltd.,	CIPL	650
100	508869	Apollo Hospitals Enterprises Ltd.,	AHEL	250
101	500820	Asian Paints Ltd.	ASPL	300
102	500295	Vedanta Limited	VEDL	3100
103	500086	Exide Industries Ltd.,	EXID	3600
104	500010	Housing Development Finance Corp.Lt	HDFC	300
105	500800	TATA CONSUMER PRODUCTS LIMITED	TGBL	1350
106	500477	ASHOK LEYLND	ALLD	4500
107	500877	Apollo Tyres Ltd	APLT	2500
108	500260	The Ramco Cements Limited	RAMC	850
109	500043	BATA INDI LT	BATA	550
110	500550	Siemens Ltd.,	SIEM	275
111	500875	ITC Ltd	ITCL	3200
112	500530	BOSCH LTD	BOSH	50
113	500790	NESTLE LTD	NESL	50
114	500510	LARSEN & TOU	LNTL	575
115	500493	Bharat Forge Ltd	BHFL	1500
116	502355	Balkrishna Industries Ltd.,	BLKI	400
117	500480	CUMMINS INDI	CUML	600
118	500290	M.R.F LTD	MRFL	10
119	500495	ESCORTS LTD.	ESCT	550
120	500112	State Bank Of India,	SBIL	1500
121	500575	Voltas Ltd.,	VOLT	500
122	500696	Hindustan Unilever Ltd.,	HULL	300
123	500520	Mahindra & Mahindra Ltd.	MNML	700
124	500570	Tata Motors Ltd.	TAMO	2850
125	500470	TATA IORN AN	TISC	850
126	500410	ACC	ACCL	500
127	500400	Tata Power Co. Ltd	TATP	6750
128	500440	Hindalco Industries Ltd.	HNDL	2150
129	500114	Titan Company Limited	TITA	375
130	500770	TATA CHEMICA	TCHM	1000
131	500008	Amara Raja Batteries Ltd	ARBL	1000
132	526371	NMDC Ltd	NMDC	6700
133	500825	Britannia Industries Ltd.,	BRIT	200
134	500104	HINDUSTAN PE	HPCL	2700
135	500312	Oil And Natural Gas Corporation Ltd	ONGC	7700
136	540719	SBI Life Insurance Company Limited	SBLF	750
137	540716	ICICI Lombard General Insurance Company Ltd	ILGI	425
138	524208	AARTI INDUSTRIES LTD.	ARIN	425
139	541729	HDFC Asset Management Company Ltd	HAMC	200
140	539524	Dr. Lal PathLabs Ltd	LAPL	250
141	539523	ALKEM LABORATORIES LTD	ALKM	200
142	533573	ALEMBIC PHARMACEUTICALS LTD	APLD	550
143	540611	AU SMALL FINANCE BANK LTD	AUSF	500
144	532210	CITY UNION BANK LTD	CUBL	3100
145	506401	DEEPAK NITRITE LTD	DENP	500
146	532482	GRANULES INDIA LTD	GRAN	1550
147	539336	GUJARAT GAS LTD	GUGL	1250
148	542830	INDIAN RAILWAY CATERING AND TOURISM CORPORATION LTD	IRCT	325
149	540005	LARSEN & TOUBRO INFOTECH LTD	LTIL	150
150	540115	L&T TECHNOLOGY SERVICES LTD	LTTS	200
151	526299	MPHASIS LTD	MPHS	325
152	540767	NIPPON LIFE INDIA ASSET MANAGEMENT LTD	NAMI	1600
153	532504	NAVIN FLUORINE INTERNATIONAL LTD	NFIL	225
154	500680	PFIZER LTD	PFIZ	125
155	523642	PI INDUSTRIES LTD	PIND	250
156	500251	TRENT LTD	TRNT	725

Read  – What is Ban in stock market?

 

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