Do you know the NSE F&O span margin calculator?
For those who want to make some side income at low rate of risk and investment, the share market can be the most beneficial option. Usually with the term share market people guess it as part of intraday or delivery trading but there is also some more option which is known as derivatives. In this option one can find some more alternatives which are known as future and options. They are not in the form of spot trades such as intraday or delivery as they are contract based trades. The trader who wants to trade in F&O needs to have NSE F&O span margin calculator first with the help of which he can know the amount needed to be paid to the broker.
The account opening and margin money:
For those who have high risk bearing capacity and want to go for better profits this option can be much beneficial. Here one also finds time in the form of tenure of contract by when he can get the profit booked or also go for the setting of limit. If the limit hits, the trader can get profit. If he wants to have some more profit he can go for another contract which is valid for a specific period. The margin money here depends on many factors. For the calculation of the same the duration of contract, the item dealing in and size of contract are the main factors that affect the value of the contract here.
The account opening process for this type of trading is also same as of the share trading. However, there are some primary differences. The share trading can be done for a few hours or for a lifetime if one goes for delivery based trading while in this type of trading there are fixed durations such as one month, two month or three months. However, within this period also one can have liberty to finish the contract with a trade in case of profit or loss booking. Here one can have long duration to square off the trade which can again prove beneficial as well as harmful.
The primary rules of share trading also apply to the traders of this segment. Here one can have time to square off the trade but one needs to monitor the market wisely as within the same time the value of contract may keep on going down which can lead to have more and more loss. To overcome this situation it is better for one to have right strategy and perfect game plan as in this market if one goes for a mistaken trade he may be ruined financially with a single trade also. If one is new to market this segment is not recommended as he may not have any clue about the movement of market and situation of loss. In this segment also one can have better credit line which one needs to use carefully and only at the moment when he is able to meet the loss.