Through ICICIdirect.com, you can now trade in index and stock futures on the NSE.
In futures trading, you take buy/sell positions in index or stock(s) contracts having
a longer contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the contract life, the price
moves in your favour (i.e. rises in case you have a buy position or falls in case
you have a sell position), you make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume,
have been enabled for futures trading.
Calculate Index and Know your Margin are tools to help you in calculating your margin
requirements and also the index & stock price movements. The Centre for Financial
Learning is a comprehensive guide on futures and options trading.
An option is a contract, which gives the buyer the right to buy or sell shares at
a specific price, on or before a specific date. For this, the buyer has to pay to
the seller some money, which is called premium. There is no obligation on the buyer
to complete the transaction if the price is not favorable to him.
To take the buy/sell position on index/stock options, you have to place certain
% of order value as margin. With options trading, you can leverage on your trading
limit by taking buy/sell positions much more than what you could have taken in cash
The Buyer of a Call Option has the Right but not the Obligation to Purchase the
Underlying Asset at the specified strike price by paying a premium whereas the Seller
of the Call has the obligation of selling the Underlying Asset at the specified
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying
Asset at the specified strike price by paying a premium whereas the Seller of the
Put has the obligation of Buying the Underlying Asset at the specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and take
advantage of more trading opportunities.