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NRIs 0pen your online Demat Account in India..
We help Indian abroad to set up a dmat account that allows NRIs to buy shares in India and can also dematerialize their existing shares online.
We offer Services to the following:
|NRIs - Non Resident Indians|
|PIOs - Person of India Origin|
|OCIs - Overseas Citizens of India|
|Domestic Resident Indians living in India|
What is a Future?
A Futures contract is nothing but an agreement between 2 parties to buy or sell an underlying asset at a specified time in the near future at a certain price. Futures trading is conducted on futures exchanges where commodity futures like: Indian gold futures, silver futures, oil futures along with index futures and equity futures or as we know stock futures are traded.
Basics of Futures Trading:
Margins: Before entering the futures market, you need to deposit a principal amount to assure the performance of your obligations. A margin deposit, as already stated, is usually 5-10% of the future contract. A good margin deposit indicates that the buyer/seller is willing and capable to compensate the opposite party to a transaction. As margin requirements are low, hedgers are able to lock in pricing of cash market goods without tying up a lot of capital. Counter productive it would prove for a hedger handling large quantities to put up 100% of the value of the hedged commodity. While low margin makes speculation the market attractive, minus the leverage rate the return on most commodities would be trivial. Margin requirements are set by the exchanges though brokerage firms can set a higher deposit. Initial margin fluctuates with the market and it is for this reason that the maintenance margin is set up, usually 75% of the initial margin. If the principal amount falls below this line either one must deposit more funds or liquidate one’s position. This is known as margin call.
Orders: Orders are of several types, the popular being market order, limit order and stop order. Analyzing “market order” first, it is used when one needs to enter and exit the market quickly. It does not yield profits and is preferred by those who prefer time to money. “Limit orders”, on the other hand, are used to buy or sell at a specified price, and will only be filled at a price that is more favorable. As the name suggests, “stop order” is used to close a position and if placed properly it will stop losses when the market tides against the interest of the traders. By definition, a sell stop will be placed below the market while a buy stop will be placed above. Please note that all orders are day orders and will be cancelled at the end of the trading day. By entering the order GTC, the order will be working in each trading session until canceled by the trader.
Execution: Ever thought how you execute a futures trade? Once decided, you call your broker to enter the futures market. The broker completes your order ticket, and stamps the time so as to be able to keep an accurate track of the time and specifics of each other. The broker then transmits the order to his firm’s trading desk. The order clerk at the trading desk then fills out an order card; time stamps it, and hands it to a runner who takes it directly to a pit broker. The pit broker then executes the order by open outcry, records the execution on the card before handing it back to the runner. The runner then takes the executed order back to the desk where the order clerk time stamps the card again before the reporting to your broker.
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