ADVANTAGES OF FUTURE TRADING AS COMPARE TO STOCK
1.
First of all,
the basic advantage is margin for particular stock. As most of A group
stocks need only 7–15 % margin to trade Futures.
2.
Futures allows
you to go for short sell while stock allows but you have to cover it on the
same day which will not give to take benefit of gap down opening when their is
certain specific event.
3.
Stocks which
comes under F&O segment are much more liquid compare to cash stocks. So you
can have easy entry and exit points for the stocks.
4.
Futures contain
some specific lot size which differ from stock to stock. So you can choose
particular stock in future as of your risk and volatility of stock. As like to
only cash stock there will not be any trade problem like. Either you will get
executed or else not. while in stock sometime it might happen that you want get
full fill of your quantity and price move in your direction and you miss the
opportunity.
5.
Coming to
charges its less compare with stocks. as you carry stock on delivery base so
there might be 0.8–1 % of brokerage you pay with some broker while in futures
your brokerage will be much lesser compare to it. As there is not more
difference in carry Futures.
·
There is only
one drawback comes into my mind is that risk is more compare to cash as it
contain lot size. sometime people may want to go with less quantity and want to
build it with time. Which will not be possible to do in Futures. One more dis
advantage is that its only for 1 month so you can’t go for longer term in
Futures as its for Short period only.
ICICI Bank continues to be our
top pick as we believe that the underlying conditions provide a favourable
testing ground for the bank to differentiate itself in relation to its key
peers. A strong liability profile, better asset mix, slower growth and healthy
CAR could make ICICI Bank well-positioned to come through this challenging
period with a relatively lower degree of stress.It maintains the positive view
on ICICI Bank and that the recent price correction offers another attractive
entry point into the stock.
Today's market was showing a
bulls comeback. Market saw a boom on the day of weekly captivity.The Nifty
closed 9% out of 9000 today.Nifty crossed
the 1000 mark in the last 4 days due to private banks RIL, HDFC,
ICICIBANK.Today, paper and liquor stocks, auto, pharma and telecom shares and
Bankifty has also jumped 13% this week. . Today's business is looking strong.
Investors also made strong profits in lockdown to Pharma, Chemical, Chemical.
Pharma index gained over 25% in 4 consecutive days. In other side the lockdown
at Titan has impacted the business fallen by 5 %.