Hi fellow boarders, I m new in here and also to the world of stock markets. Infact started only 3 months back and soon enough realised I m not ready enough for Intraday trading. Needless to say i started delivery based trading for medium to long term. The recent volatile markets have led me to having modest gains and since most of my current holdings seem good for the long term I m not too worried about the reds in my portfolio. However I would like to utilise this time available to study more about stock market namely futures and options.
It would be really helpful to me if the better informed traders in here can guide me towards some good books on the subject. Whatever knowledge i have is from the websites in general. But even after going through the matters i have not been able to develop a clear enough idea about the whole process to finally take a plunge.
My understandings and my doubts on futures are as below.
A future contract is a contract that gives me the obligation to buy a particular lot of shares in a company after the expiry of a particular time frame. 50 NIFTY 24 Feb 2011 futures @ 5920 means I ll buy 50 units of Nifty on feb 24 2011 at Rs 5920 per unit.
I hope I am correct upto here.
How much do I need to spend upfront to buy the 50 Nifty 24 feb 11 futures?
Is it 50*5920?
Or is it a percentage of the amount?
I think it ll be better if i go step wise so that i can move ahead after clearing my fundamentals...
I thank everyone in advance for the help..
It would be really helpful to me if the better informed traders in here can guide me towards some good books on the subject. Whatever knowledge i have is from the websites in general. But even after going through the matters i have not been able to develop a clear enough idea about the whole process to finally take a plunge.
My understandings and my doubts on futures are as below.
A future contract is a contract that gives me the obligation to buy a particular lot of shares in a company after the expiry of a particular time frame. 50 NIFTY 24 Feb 2011 futures @ 5920 means I ll buy 50 units of Nifty on feb 24 2011 at Rs 5920 per unit.
I hope I am correct upto here.
How much do I need to spend upfront to buy the 50 Nifty 24 feb 11 futures?
Is it 50*5920?
Or is it a percentage of the amount?
I think it ll be better if i go step wise so that i can move ahead after clearing my fundamentals...
I thank everyone in advance for the help..