Table of Contents
How do you identify futures and options trading?
Difference between Futures and Options A futures contract to buy/sell underlying security has to be followed up on the predetermined date at a contractual price. On the other hand, an options contract provides a buyer with a choice to do the same, if he/she profits from a trade.
Is futures and options the same?
A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. An options contract gives the buyer the right to buy the asset at a fixed price. However, there is no obligation on the part of the buyer to go through with the purchase.
Which is better options or futures?
Futures have several advantages over options in the sense that they are often easier to understand and value, have greater margin use, and are often more liquid. Still, futures are themselves more complex than the underlying assets that they track. Be sure to understand all risks involved before trading futures.
Do futures expire?
Futures contracts have expiration dates as opposed to stocks that trade in perpetuity. They are rolled over to a different month to avoid the costs and obligations associated with settlement of the contracts. Futures contracts are most often settled by physical settlement or cash settlement.
Can I sell my futures before expiry?
Yes, the futures contract can be settled before expiry. In derivatives markets most of the participants make an exit from their futures contract before expiry.
How to open a trading account with Motilal Oswal?
To open a trading account you must have bank information which includes Name, Address, IFSC Code and account number on your cheque, bank statement or bank passbook. There is no minimum deposit requirement when you open a trading and demat account with Motilal Oswal. You need to pay account opening charges and demat AMC, if applicable.
What is motmotilal Oswal equity brokerage charges?
Motilal Oswal Equity Brokerage Charges (Equity Delivery Brokerage, Equity Intraday Brokerage, Options Brokerage and Futures Brokerage) is the total trading cost that a client has to bear for trading in equity. It is calculated by sum up all the taxes and charges that is levied on top of your brokerage.
What is the minimum deposit to open a trading account with Motilal?
There is no minimum deposit requirement when you open a trading and demat account with Motilal Oswal. You need to pay account opening charges and demat AMC, if applicable. Once your account is up and ready you need to transfer fund to start trading. Motilal Oswal don’t have any hidden charges.
What is free Demat AMC in Motilal Oswal?
Free Demat AMC (Client need to opts for 3,000 Value Pack (prepaid brokerage) or Open the A/c with above 25,000 margin). Sign up now. Trading Account opening is one time fee that Motilal Oswal charge while initiate your account opening process.