STOCK FUTURE TIPS BY TRADING EXPERTS

Stock Market Tips provide good investment strategies for the traders. Traders can earn maximum return from the investment through Stock Tips. There are so many ways in which you can do stock market trading. Here we are presenting some of the most common form of stock market trading including trading in equity segment and derivative trading along with the advantage and disadvantage of each type of trading. This will help you find the right way of doing trading in the stock market depending on your fund and your objective of stock market investment.

Equity Segment – This is the most common form of trading. In equity segment you buy the stocks of the companies through your broker. Once the request for buying the stocks is settled and payment is made the stocks are deposited to the account of the investor. Then stocks can be hold or subsequently sold by the investor. The advantage of the equity trading is that there is no time frame for selling the stocks or closing the deal. You can always hold the stocks till you want and then sell it when you think is the right time. But the brokerage charge for equity segment is greater than the derivative segment. If you are looking for good returns and do not want to take more risk and if you are ready to hold the stocks for longer period of time, this is the best way for you to invest in the stock market.

Derivative Segment – Derivative trading can be done as Futures & Options. . In derivative you actually buy a contract that expires within a fixed time frame. Usually all the derivative contracts in a specific stock market expires on a particular day of every month. You have to close the deal either by selling or buying the stocks within that fixed time. In derivative trading the stocks are bought and sold in lot. The number of stocks in a lot varies from one stock to the other and the price of the lot is derived by multiplying the number of the stock with the current price of that stock in that market. The biggest advantage of derivative trading is that you can get the lot by investing only the 30 to 40% of the actual price of the stocks that you will be holding. Moreover, you can gain by short selling the stocks as well that means you can first sell the stocks at higher price and then make profit by getting the stocks at lower price. The brokerage for derivative trading is generally lower than the cash segment if you consider the amount of investment and the number of stocks you hold.

Stock Futures - Stock future is a type of [futures contract] between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to take delivery of the underlying stock in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to deliver the stock in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties - the buyer hopes or expects that the stock price is going to increase, while the seller hopes or expects that it will decrease. OR you can take the accurate Stock Future Tips by market experts

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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