Hi

I have not traded futures before. All i know is its theory concept. I have an Geojit trading account.

Many are talking about futures and how we can hedge them to minimize our loss but i am not able to understand many things :

1. How exactly one buys / sells futures? (Especially in Geojit panel).

2. Can we sell futures before its expiry

3. Where future shares will go after its expiry. Lets say there

are less buyers than future expiry shares what will happen then?

4. I have read that no delivery will be their in case of Indian futures and options only difference cash is credited/debited. Is it true ?

5. Can we select any price future.

I mean let's say stock A is trading at 100 Rs. Lets assume 2 cases

a. I predict that after 1 week it will got to 150 rs

b. I predict that after 1 week it will close at 80 rs

How to make profits in these cases using futures ?

6. Can futures be traded using margin facility or it requires cash.

7. I know future brokerage is based on lots. Geojit says

< 9 cr 75 (current) for 1 lot.

Now what exactly it means?

8. I know futures is kind of risky but let's take example of Pipavav Shipyard. I gained an profit of 14% on delivery itself since I bought at lows last week (after LIC Housing scam broke) Even a Tom Dick and Harry can make it out that the share price will rise within one week and its rumors that's affecting the price currently. .

So I am wondering any smart trader (who is willing to take risk) can easily make a chuck of money by using futures of these share right ? It's not as risky as it sounds I think .

Sorry for asking too many questions, but I am a naive trader with little experience .

I have not traded futures before. All i know is its theory concept. I have an Geojit trading account.

Many are talking about futures and how we can hedge them to minimize our loss but i am not able to understand many things :

1. How exactly one buys / sells futures? (Especially in Geojit panel).

2. Can we sell futures before its expiry

3. Where future shares will go after its expiry. Lets say there

are less buyers than future expiry shares what will happen then?

4. I have read that no delivery will be their in case of Indian futures and options only difference cash is credited/debited. Is it true ?

5. Can we select any price future.

I mean let's say stock A is trading at 100 Rs. Lets assume 2 cases

a. I predict that after 1 week it will got to 150 rs

b. I predict that after 1 week it will close at 80 rs

How to make profits in these cases using futures ?

6. Can futures be traded using margin facility or it requires cash.

7. I know future brokerage is based on lots. Geojit says

< 9 cr 75 (current) for 1 lot.

Now what exactly it means?

8. I know futures is kind of risky but let's take example of Pipavav Shipyard. I gained an profit of 14% on delivery itself since I bought at lows last week (after LIC Housing scam broke) Even a Tom Dick and Harry can make it out that the share price will rise within one week and its rumors that's affecting the price currently. .

So I am wondering any smart trader (who is willing to take risk) can easily make a chuck of money by using futures of these share right ? It's not as risky as it sounds I think .

Sorry for asking too many questions, but I am a naive trader with little experience .

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