How to trade in Futures & Options?

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prashant s Posts:2 2006-12-08 03:39:32	How to trade in Futures & Options?
prashant s Posts:2 2006-12-08 03:39:32	I wld like to get answers more specific to trade in India. If possible pls give me few examples as I am totally new and wld like to trade in Futures and Options

Rocky S Posts:16 2006-12-08 03:45:47
Rocky S Posts:16 2006-12-08 03:45:47	You need a broker but if you are new at this you can get wiped out. Try something safe like a mutual fund.

scooter Posts:1 2006-12-08 04:00:38
scooter Posts:1 2006-12-08 04:00:38	There is info here under currency-trading. http://infoaboutall.blogspot.com/

stock.expert Posts:4 2006-12-08 06:09:06
stock.expert Posts:4 2006-12-08 06:09:06	Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions. I am sure that you can get your answers in this website. http://investing.sitesled.com/ Good Luck and Best Wishes!

MR MONEY Posts:3 2006-12-08 08:38:28
MR MONEY Posts:3 2006-12-08 08:38:28	Very high risk. Most traders of options/futures will only use this as a small portion of their portfolio (5%). The movements are soo volatile that it is difficult for an individual to make decent returns year after year. Good Luck.

cvrk3 Posts:2 2006-12-08 19:40:59
cvrk3 Posts:2 2006-12-08 19:40:59	Try iccidirect.com and it gives you all answers.

Mathew C Posts:2 2006-12-09 01:09:25
First of all in India you will have to open an account with a broker like Geogit or JRG securities who has options trading division. Then probably they ask you to fill some forms and deposit some money with them. Probably some of them ask you to give a recommendation form your Bank manager regarding the soundness of your financial position with the Bank. Indian option tradig is non charecteristic of Amreician trading system in the sense you have many road blocks like premium fixed by the exchange on top of the price. This premium is determined by the standard deviation of the price movments of the stock in the pervious year. The trap here is if the standard deviation has varied much this year you have no escape route you will be forced to pay the premium plus the option price. If your calculation fails or if the premium is too high you can be wiped out. The other hurdle is minimum fixed for trading. To my calculation if you don't have atleast Rs.65000 available for each trade then you may not be able to participate. This happens due to the regulatory directive of fixing minimum number of contracts for each trade. Once you are prepared to accept all this roadblocks then you are on your way to trade options in the Indian Market. Good luck. Usually the brokers arrange some seminars which you can attend or they will give you a lecture on how to play the options market. You can choose to attend this and gain more informaiton on this.

Mathew C

Posts:2
2006-12-09 01:09:25

First of all in India you will have to open an account with a broker like Geogit or JRG securities who has options trading division. Then probably they ask you to fill some forms and deposit some money with them. Probably some of them ask you to give a recommendation form your Bank manager regarding the soundness of your financial position with the Bank. Indian option tradig is non charecteristic of Amreician trading system in the sense you have many road blocks like premium fixed by the exchange on top of the price. This premium is determined by the standard deviation of the price movments of the stock in the pervious year. The trap here is if the standard deviation has varied much this year you have no escape route you will be forced to pay the premium plus the option price. If your calculation fails or if the premium is too high you can be wiped out.
The other hurdle is minimum fixed for trading. To my calculation if you don't have atleast Rs.65000 available for each trade then you may not be able to participate. This happens due to the regulatory directive of fixing minimum number of contracts for each trade.
Once you are prepared to accept all this roadblocks then you are on your way to trade options in the Indian Market. Good luck. Usually the brokers arrange some seminars which you can attend or they will give you a lecture on how to play the options market. You can choose to attend this and gain more informaiton on this.