FAQs
Choosing the Best F&O Stocks: Samco's Three Golden Rules? ›
Click on the sector which is above or below 2 – 2.5 %. When you click, you will get the list of stocks. From this stock list, you can select the stock (that is in F&O Script) which is above or below 2 %. This is one of the easiest methods to find the F&O Stock for intraday trading.
How do I choose a stock for F&O trading? ›Click on the sector which is above or below 2 – 2.5 %. When you click, you will get the list of stocks. From this stock list, you can select the stock (that is in F&O Script) which is above or below 2 %. This is one of the easiest methods to find the F&O Stock for intraday trading.
Which stocks are best for F&O? ›- Vodafone Idea Ltd. Price : 13.7. Change. ...
- Aditya Birla Fashion & Retail Ltd. Price : 264. Change. ...
- Aditya Birla Capital Ltd. Price : 216. ...
- Multi Commodity Exchange of India Ltd. Price : 4053.55. ...
- Grasim Industries Ltd. Price : 2368. ...
- Oberoi Realty Ltd. Price : 1471.15. ...
- Indian Hotels Co Ltd. Price : 605.75. ...
- Bharti Airtel Ltd. Price : 1341.45.
Eligibility criteria for stocks for F&O trading
Here, a stock's quarter sigma order size means the order size (in value terms) that can cause a change in the stock price equal to one-quarter of a standard deviation. The Market Wide Position Limit in the stock shall not be less than Rs 500 crores.
Price to Earnings Ratio (PE Ratio)
The PE ratio helps us understand how the market values the company. A higher PE ratio usually suggests better future growth prospects. However, it is important not to blindly invest in high PE companies; their fundamentals should also be strong.
- Long Call. A long-call strategy involves buying a call option hoping that the underlying asset's price will rise above the strike price before expiry. ...
- Short Call. ...
- Long Put. ...
- Short Put. ...
- Straddle. ...
- Strangle.
The buy to open order is basically pretty simple, and it's the most commonly placed option order in options trading. When you want open a position and go long on a specific options contract, you would place a buy to open order to purchase that specific options contract.
Is F&O more profitable? ›It is possible to be profitable in F&O trading. One reason retail investors' interest in Future and options trading is that it is a margin base trading, that is, a higher value position can be taken by just paying a portion of the full amount.
Is F&O better than intraday? ›As an intraday trader in cash segment, you have restrictions like having to square off positions by 3.20 pm and inability to carry short positions overnight. With the leverage offered for intraday stock now reduced to the same levels as the F&O segment, trading on F&O is a much better product.
How do I become a successful F&O trader? ›- Be Able to Manage Risk. Options are high-risk instruments, and it is important for traders to recognize how much risk they have at any point in time. ...
- Be Good With Numbers. ...
- Have Discipline. ...
- Be Patient. ...
- Develop a Trading Style. ...
- Interpret the News. ...
- Be an Active Learner. ...
- Be Flexible.
What is the 50 margin rule in F&O? ›
The rule of 50% cash margin will not be applicable to any Kotak Securities clients. The journey for placing orders in the F&O segment will be unaffected. The new rules implemented by the exchange do not affect any Kotak Securities client. The 50% cash has to be maintained by the broker and not the client.
What is F&O margin rules? ›The F&O margin penalty is a fee the stock exchange charges for failing to maintain the required margin. It is calculated as a percentage of the shortfall in the margin amount and is levied daily until the required margin is restored.
What is the margin rule in FNO? ›How is F&O Margin Tracked Intraday? During the day, the exchange takes at least four snapshots of the client's holdings to determine the intraday margin needs. The client's peak intraday margin demand is determined by the highest margin requirement throughout these four snapshots.
What is the formula for picking stocks? ›P/E Ratio – The P/E ratio is a calculation that evaluates a stocks relative performance and value. It is computed by dividing the stock's price by the company's per share earnings for the most recent four quarters.
How to pick good stocks in Indian market? ›Look for liquidity: Liquid stocks get more buyers and sellers as compared to illiquid stocks, and provide more opportunities to trade. Avoid volatility: Trading highly volatile stocks can lead to huge losses, as their movements are hard to predict.
Which stock has strong fundamentals? ›SNo | Top Fundamentally Strong Company | Industry |
---|---|---|
1 | Divis Laboratories Ltd | Pharmaceuticals |
2 | Tata Consumer Products Ltd | Plantation & Plantation Products |
3 | Bajaj Finance Ltd | Finance |
4 | Titan Company Ltd | Diamond, Gems and Jewellery |
- ACC Ltd.
- Apollo Tyres Ltd.
- Ashok Leyland Ltd.
- Asian Paints Ltd.
- Atul Ltd.
- Balkrishna Industries Ltd.
- Bata India Ltd.
- Berger Paints India Ltd.
Although you may be tempted to gain a lot by trading f & o, you should be aware of the risks too. In conclusion, futures and options (F&O) trading represent an advanced form of investment in the financial market, offering both opportunities for profit and potential risks.
Who is the biggest F&O trader in India? ›Position | Top Traders in India |
---|---|
1 | Premji and Associates |
2 | Radhakrishnan Damani |
3 | Rakesh Jhunjhunwala |
4 | Raamdeo Agrawal |
Making Money With Futures and Options
If you use futures as a hedge, you stand to gain. For instance, if you hold shares of a company worth Rs. 1500, with the current price at Rs. 1700, you may sell futures at 1710, and lock in your profit at Rs.