00:00₹15,00,000 futures position for just ₹1,08,000
00:04You might find it strange to hear
00:06But how to take a position of Rs 15,00,000 with such little money?
00:09If the value of the futures contract is Rs 15,00,000
00:12So it is not necessary that you need the full amount of Rs 15,00,000 to take a position.
00:18This is where a very important concept of the future comes in.
00:21which we know as margin
00:24But understanding futures trading just by looking at margins can be confusing.
00:29Because there are three different things here.
00:32First contract value, second margin and third trading capital
00:36And considering them the same thing can be a big mistake.
00:40Because the lower margin required to take a position does not mean that
00:44That market risk has also reduced
00:47If the market moves in your direction, you may benefit.
00:51But if the market goes against your expectations
00:54So, just looking at the margin amount is not enough to understand the risk.
00:58So the question is not just
01:00How much margin is required to trade futures?
01:04The real question is
01:05How big is my position?
01:07And how much risk can I handle?
01:11To know the complete concept and practical example of futures margin
01:16Do watch our F&O Basics Learning Series Part 4
01:20And now you have the next big question.
01:22Larger futures positions can be taken by paying lower margins
01:26So what is leverage, we will understand this in the next video.
01:31Be sure to follow and subscribe to no chart finance now.
01:34And learn F&O from zero in a practical way
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