"Unpredictable" is the best describing word for Stock market. Yet it attracts the most. Knowledge of stock market helps in assuring maximum profit. Lets understand Capital/Stock Market in brief:
(I) Capital Market
(A)Primary Market
(B)Secondary Market
(i)Cash Market
(ii)Derivative Market
(a)Options
(b)Futures
(1)Stock Futures
(2)Nifty Futures
As the above shows stock futures comes under Futures Market and it again comes under derivative market. Derivative market came in existence in the year 2000. In it, a product whose value is derived from the value of one or more basic variables called bases(underlying asset), in a contractual manner. This underlying asset can be equity, Forex, commodity or any other asset.
Understanding Stock Future Market: Future market is basically contract based market. It allows trading in a periodic time. In which trading takes place for stocks or scrips in three contracts. These three contracts includes a current contract and two upcoming contracts. Here traders have a facility to trade in lots. A trader can trade in all three contracts up to his desire. The first contract expires on each last thursday of month.Future market includes an exchange as a mediator, which regulates trading. In futures stocks are standardized.
Why it is Preferred for Trading : Trading in futures is preferred more because huge profit can be earned by small investment. Along with this, it has many unique features which makes it more appealing: First it is contract based. It provides us options. It allows trading in lots. Mark-to-mark methodology is used in future market. Here settlement of trading takes place on daily basis. Here traders are allowed to trade by submitting a few amount as a margin money. Here is no circuit applied in trading in futures. Risk is diversified as the risk is low in futures trading. It allows to make money even when the market is bullish. These techniques are: Speculating, Arbitraging, Hedging. They are used for minimizing the loss.
Trading in Stock Futures: Lack of information of stock market may lead to big loss. So it is good to take valuable suggestions and guidance from some stock advisory company. These companies have good research teams which helps traders to track the exact position of stocks as the stock market fluctuates a lot.
Trading in stock futures can be done under a proper guidance as it is suggested for safe trading. There are many advisory firms which provides stock futures, tips and also they facilitates by offering special packs and free trials. One can avail stock futures tips form CapitalVia Global Research Limited.
I am working with CapitalVia Global Research Limited, a leading Investment Advisory Company which provides recommendations on Stocks- Cash and F&O traded in NSE & BSE, Commodities, traded in MCX & NCDEX.
Monisha
e-Marketing Specialist,
CapitalVia Global Research Lmited.
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