Questions Derivative
Read More

Community User Posted on 11:13am 28-Feb-2020

How to do option buy?

Comments

ICICIdirect Executive Thank you for the query.

An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.

We suggest you view a video on how to place an order in options from the below link.

https://www.icicidirect.com/idirectcontent/Home/HelpVideos.aspx
04:40pm 28-Feb-2020
Community User thanks! helpful for starters indeed :)
05:54pm 01-Mar-2020

Community User Posted on 11:00am 12-Feb-2020

How to convert future plus position to futures

when you are facing loss

Comments

ICICIdirect Executive Thank you for the query. We would like to inform you that Convert to Future (CTF) is an added feature provided under FuturePLUS product where one can convert his existing position under a contract in FuturePLUS to Future position of the same contract within the stipulated time prescribed by I-Sec. You will find the link of Convert to Future in open positions page against each position under a contract in the column of Actions . Once you choose to convert the existing open position to Future, following remark will appear You are requesting to convert FuturePLUS position to Future .

FuturePLUS is an intraday product wherein any position taken needs to be squared off on the same trading day or Convert to Future (CTF) till the end of the day by the customer itself. If customer doesn t place square off or does CTF for his position by the end of the day before the stipulated time, then following possibilities may arise, viz:

1) ICICI Securities may run End of settlement Square off process which will square off the open FuturePLUS position generally 3:15 pm onwards on best effort basis.However, I-Sec reserves the right to change the square off timing , if required, especially during volatile days.
OR
2) The FuturePLUS position may be compulsorily converted to future position by the system at the end of the day.

When FuturePLUS position is converted to a Futures position, the additional margin amount is required as applicable for Futures positions. The additional margin to be blocked on conversion would be the difference of the required margin for Futures and the already blocked margin for FuturePLUS position. The limit would be accordingly reduced with the differential amount of margin requirement. On conversion of FuturePLUS position to Future position the condition of Available Margin(AM)* and Minimum Margin(MM)* for the proposed Future position would be checked before blocking the additional margin amount required as follows:

1. If AM>=MM,of proposed Future position then additional margin required will be,

Initial Margin % required for Future position on Base price i.e.weighted average price of existing FuturePLUS position - Blocked Margin for existing FuturePLUS position.

2. If AM
Initial Margin required for future position on Base price i.e.weighted average price of existing FuturePLUS position - Available Margin for existing FuturePLUS position.

For both the above scenarios, if current limit is more than or equal to the additional margin required, only then you would be allowed to convert your existing FuturePLUS position to Future position.

* Please refer below link to know about Available Margin and Minimum Margin, and FAQs related to Convert to Future (CTF)

https://secure.icicidirect.com/IDirectTrading/Trading/FNO/StaticData/FAQ-Futures.htm#futureplus
11:49am 12-Feb-2020

Community User Posted on 05:23pm 21-Jan-2020

Is correction over?

Comments

Community User Good Place to get feedback and get to know financial knowledge
06:30pm 21-Jan-2020
Community User It will be known after budget
06:30pm 21-Jan-2020
Community User Not yet Mr.Subodhwarkari, Wait for few more days.
05:13am 22-Jan-2020
Community User that s what the screen said in early october 2019
08:27am 22-Jan-2020
Community User Unless demand comes back into our market it will be difficult for the markets to climb. Lot also depends on our coming budget and the various steps taken by our honourable finance minister to infuse confidence and give momentum to the market.
10:57am 22-Jan-2020
Community User wait after budget three months will be investing time....
11:37am 22-Jan-2020
Community User Chinese market is seeing a sell off, down 9 percent today.
09:56am 03-Feb-2020

Community User Posted on 08:29am 07-Jan-2020

What is the immediate support and resistance levels for nifty to trade in options ?

Comments

Community User Posted on 07:33am 07-Jan-2020

NIFTY is at 11993.05 Nifty future 30 Jan 2020 is at 12040 . If I buy one ce of strike price 12000 at 69 and sell two call of strike price 12100 at 27 rs ( Expiry 30 Jan 2020)

Where will be the maximum profit and from where unlimited loss will start. Regard

Comments

ICICIdirect Research Our research analysts are of the view that your net debit in the strategy is (69 - 2*27)= 15. Thus on declines, the maximum loss is 15. However on upsides, if Nifty expires at 12100, you earn maximum of (100-15)= 85. Beyond this, your profit starts declining with breakeven at 12185.
11:21am 07-Jan-2020
Community User At level NIFY OPTIONS 16JAN 2020, WILL SUPPORT FOR YIELD
07:47pm 12-Jan-2020

Open Account Online

Trending Questions
Most active topics in the last few days