Intraday Tips

How Derivative Market is More Profitable from Equity Market

Equity Market

Investors have two platform to invest their money in the market – BSE and NSE with the help of Brokers. They give all the facility to the traders to buy and sell the shares as and when they required by paying very nominal brokerage. There are lots of ventures listed in NSE and BSE where one can invest and earn handsome profit by following guidelines of the stock broking companies. The most important point one has to keep in their mind before investment is about the future growth of the sector or company they are investing. Their growth in the near time assure your profit also.

NSE BSE TipsNow here we discuss some important point that shows priority of Future market rather than equity

Delivery Format of Shares :-

  • Cash Market is the smallest part of the share capital of the company and investor buy the share in a view that the company will show good financial performance in future and share price will be rise. After the closing of trade, investor get deliver of his traded shares.
  • The Future Market is different from NSE Cash market in this segment there is no deliver and all trades got expired.

Initial Margin Money:-

  • In cash market every broker provides around 10 times trading limit of his trading capital to his client for intraday. But there is no limit is given for delivery trading. They have to pay price of delivery share to his broker to carry forward it for next day
  • In future market brokers also provide 10 times trading limit to his client for intraday. But of around 10 % has to be paid before trading in a future contract .

Settlement of Money:-

  • In cash market broker has take T + 2 Days for rendition of trade money.
  • In future market broker has take T + 1 Days for the settlement of all his money.

Expiry of Trade :-

  • In cash market there is no expiry date of his shares. There is no expiry of long term equity shares
  • In future market every contract has a expiry date that is the last Thursday of the month.

Positional of Short Selling :-

  • In cash market or cash segment there is facility provided only in intraday where traders can first sell and then buy the shares in the same trading day.
  • In future market it is allow to carry the contract till the expiry of the contract duration.

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