How does it really works?
Say If I buy Nifty futures @ 6300 today (9th Nov)=My margin money needed is 10%*50*6300 which is approx Rs.30000.
Tomorrow 10th Nov, nifty goes down 100 points, Nifty @ 6200. so i need to add 100*50=5000 to my ledger account to avoid square off by broker. so my total investment would be Rs.35000 so far.
next day, 11th Nov, Nifty goes up 200 points, Nifty @6400. Profit of 100 points, which is Rs.5000. So Now if i sell my 1 lot of Nifty futures, my total amount would be Rs.30000(initial investment)+Rs.5000(added money to avoid square off by broker)+Rs.5000(profit of 100 points). Rs.40000 will be there in my account, am i right.
my doubt here is on the second day, nifty goes down 100 points, they will not deduct 100*50=5000Rs. from my account if i add the aditional margin money, right?
Am planning to start trading with Mini Nifty with just one lot.
Investment needed is Just Rs.12000. But in order to avoid loss due to unexpected market movement, I will have additional surplus amount of Rs.8000(400 nifty points*20 lot size).
Bought Nifty futures @ 6200, strong support for Nifty @ 6000, so nifty can go down till 6000 or at the max 5800. Maximun down probality is 400 points, so if i have that additional Rs.8000, i can avoid my loss by adding this margin money.
By this way I can increase the profit probability. Please advice!!
Say If I buy Nifty futures @ 6300 today (9th Nov)=My margin money needed is 10%*50*6300 which is approx Rs.30000.
Tomorrow 10th Nov, nifty goes down 100 points, Nifty @ 6200. so i need to add 100*50=5000 to my ledger account to avoid square off by broker. so my total investment would be Rs.35000 so far.
next day, 11th Nov, Nifty goes up 200 points, Nifty @6400. Profit of 100 points, which is Rs.5000. So Now if i sell my 1 lot of Nifty futures, my total amount would be Rs.30000(initial investment)+Rs.5000(added money to avoid square off by broker)+Rs.5000(profit of 100 points). Rs.40000 will be there in my account, am i right.
my doubt here is on the second day, nifty goes down 100 points, they will not deduct 100*50=5000Rs. from my account if i add the aditional margin money, right?
Am planning to start trading with Mini Nifty with just one lot.
Investment needed is Just Rs.12000. But in order to avoid loss due to unexpected market movement, I will have additional surplus amount of Rs.8000(400 nifty points*20 lot size).
Bought Nifty futures @ 6200, strong support for Nifty @ 6000, so nifty can go down till 6000 or at the max 5800. Maximun down probality is 400 points, so if i have that additional Rs.8000, i can avoid my loss by adding this margin money.
By this way I can increase the profit probability. Please advice!!