Every option trading kotak

It is the amount that brokerage houses charge to help you carry out a transaction on the stock markets. Poor performance of website is reported in peak hours of trading. Provides a low bandwidth website which works well where internet connection is slow. Kotak Securities Ltd stock brokers in India. ICICIdirect is a retail trading and investment service from ICICI Securities, the largest retail stock broker firm in India offering a wide range of investment options to the retail and institutional customers. Wide range of investment options available under one portal. ICICI Securities is part of ICICI Group. ICICI Securities Pvt Ltd.

Demat Account is mandatory. Commodity trading is not available for retail investors. Rs 25 per call after first 20 free calls in a month. ICICI Security charges highest brokerage in comparison to most of the retail brokers in India. If you are confused in choosing the best broking site, this page is to help you find which is the best broker among ICICIDirect and Kotak Securities. Rs 75 per month if brokerage paid in a month is less then Rs 750. So, you can actually trade in index and stock contracts in just the same way as you would trade in shares. When closing a futures index contract on expiry, the closing value of the index on the expiry date is the price at which the contract is settled.

Without margins, you cannot buy or sell in the futures market. Post purchase, MTM margin covers the daily differences in closing prices. It is not necessary to hold on to a futures contract till its expiry date. Your broker will deduct the amount from your margins deposited with him and forward it to the stock exchange. Once you have these requisites, you can buy a futures contract. In practice, most traders exit their contracts before their expiry dates.

When you trade in futures contracts, you do not give or take immediate delivery of the assets concerned. If you have left India for a holiday and are not in a position to sell the future till the day of expiry, the exchange will settle your contract at the closing price of the Nifty prevailing on the expiry day. Initial margin amounts fluctuate daily depending on the market value of your open positions. Market margin covers the difference between the cost of the contract and its closing price on the day the contract is purchased. Once you do this, hand over the margin money to the broker, who will then get in touch with the exchange. Margin payments help traders get an opportunity to participate in the futures market and make profits by paying a small sum of money, instead of the total value of their contracts. Money is the obvious other requirement. You have to pay this amount upfront to the exchange or the clearing house.

It helps reduce the risk that the exchange undertakes and helps in maintaining the integrity of the market. If you receive profits, they will be added to the margins that you have deposited. Such an exit depends solely on your judgment of market movements as well as your investment horizons. These are usually prescribed by the exchange as a percentage of the total value of the derivative contracts. This is the amount you give to the seller for writing contracts. Trading in futures is slightly more complex than trading in straightforward stocks or etfs. However, many traders also choose to settle before the expiry of the contract. The exposure margin is set by the exchange to control volatility and excessive speculation in the futures markets. However, there are also downsides to futures trading.

If you made a loss of money, the amount will be deducted from the margins. Buying and selling futures contract is essentially the same as buying or selling a number of units of a stock from the cash market, but without taking immediate delivery. The main payoff for traders and investors in derivatives trading is margin payments. If on the last Thursday of July, ABC Ltd. However, this requirement is slightly different for the derivatives market. Index futures contracts are settled in cash. This can again be done on expiry of the contract or before the expiry date. The factors that decide the amount of initial margin are the average volatility of the stock in concern over a specified period of time and the interest cost. This particular contract expires on July 27, being the last Thursday of the contract series.

Example: You have purchased a single futures contract of ABC Ltd. There are different kinds of margins. Initial margin is defined as a percentage of your open position and is set for different positions by the exchange or clearing house. This amount is adjusted with the margins you have maintained in your account. This will also be settled by the exchange by comparing the index levels when you bought and when you exit the contract. This is called settling of the contract. You can do so by either selling your contract, or purchasing an opposing contract that nullifies the agreement. However, it does not come for free. Depending on the profit or loss of money, your margin account will be credited or debited.

Here again, your profits will be returned to you or losses will be collected from you, after adjusting them for the margins that you have deposited once you square off your position. It is levied on the value of the contract that you buy or sell. This will be added to your account. As a buyer, your pay a premium margin, while you receive one as a seller. If on the date of expiry, the index closes higher than when you bought your contracts, you make a profit and vice versa. The low upfront payments and highly leveraged nature of futures trading can tempt traders to be reckless which could lead to losses. The exchange, in turn, will forward it to the seller, who has made that profit. Track the Net Asset Values and overall portfolio performance. Invest systematically by setting up Systematic Investment Plans, Systematic Transfer Plans or Standing Instructions through any of the channels mentioned above.

loss of money Reports, Transaction reports and more, through net banking. By making small, disciplined savings in mutual fund schemes over a period of time, these plans bring you closer to realising your financial goals. Register nominations for mutual fund investments made through the investment account. Systematic Investment Plans, called SIPs, help you create wealth over the long term through small and periodic investments. Get a consolidated view of your entire mutual fund portfolio. Systematic Investment Plan comes with a host of advantages. By investing across market phases, whether bullish or bearish, this approach ensures that the cost of investment averages out over a period of time.

Get access to recommended funds. Various statistical tools are then applied to arrive at the final set of recommended funds across various categories. The Investment Account is a unique facility where you can view your portfolio of Mutual Funds online on a daily basis. The selection criterion takes into account factors like consistency of performance, alpha generation and risk management, as well as fund manager skills. It is a disciplined way of saving. Simply put, a SIP is a vehicle or approach to invest a fixed amount in any fund or scheme at regular intervals. Fund performance over the last 24 to 36 months is considered depending on the asset class being evaluated. Assisted trading platform is setup for customers who need face to face communication with financial experts for investment options.

Kotak Securities offers 3 in 1 account, hence along with opening a trading and Demat account, you will also need savings bank account with Kotak Mahindra bank. The program also offers a Personalized Relationship manager, who will assist customers while executing trades and making financial investment decisions. Kotak Securities is a fully owned subsidiary of Kotak Mahindra Bank. Xtralite is mobile friendly and so you can access this website from your mobile phone even when you are connected to 2G. Investment portfolio pie gives you detailed information about equity, derivatives, mutual funds. Hence, if you trade more in any given month then brokerage charged for that particular month is reduced. Advanced fees brokerage plan takes the hassle of brokerage out from trading.

If you are interested in additional details, please read our detailed article about Kotak Demat accounts. Kotak securities offer three types of brokerage plans and customers can choose a brokerage plan based on individual requirements. Kotak Securities Desktop Based Trading. Kotak Securities for Android, IOS and Windows Phone platform. Keat ProX deals with scripts on the BSE, NSE and NSE Currency markets. KEAT ProX is a windows desktop software which needs to be installed on a windows computer or laptops for trading. Kotak assisted trading also offers services like check pick up and drop off, call in trade, Free trading education and lots more. The advanced brokerage paid can be used to offset the brokerage and unused brokerage is returned after 12 months.

Dynamic brokerage plan is an innovative product from Kotak Securities. Launched in 1994, today Kotak service over 15 lakhs customers from 1255 outlets in over 386 cities spread across India and the world. Kotak Securities mobile trading application offers you the latest market updates from market leading newspapers like Economic Times, Times Of India or Money Control. KST allows you to trade in equities, derivatives and currency derivatives, track your portfolio, get live streaming market updates, stock quotes and much more. Additionally, it also gives sector wise break up along with information on specific scripts from your portfolio. The Kotak Stock Trader application caters to the needs of every investor. Kotak Securities offers free assisted investing services to all its customers. They have also tied up with Bloomberg TV and you watch the channel live from the application.

Kotak Securities research analyst, an option to trade across market segments, offers a complete portfolio control and much from at blazing fast speed with no lag. With this plan, your brokerage is calculated on a monthly basis based on the amount you traded. Kotak Securities stands out among competitor by providing multiple trading platforms to its customers. With Fixed Brokerage Plan, you will pay a fixed percentage of total trade turnover as brokerage. Kotak Securities Mobile Based Trading. Kotak Securities offers online trading platform as well as assisted trading platform.

The concept is simple, if you are a Kotak Securities customer, you can walk into any local Kotak securities office and talk to a financial advisor about your financial aspirations and how you can achieve them. CNX NIFTY scrips streaming live on it by default. With this plan, traders opt for a reduced brokerage by prepaying brokerage in advance. As the derivative markets deal in speculation, there is a large amount of risk involved. We will learn more about these players in our next session. They are extremely important to a derivative market and are primarily responsible for setting future prices. Shares are assets while derivatives get their values from the shares being held. By rule of thumb, if you are a cautious investor with limited funds, learn to hedge your bets while if you are ready to take some risk and have ample funds to play the markets, not to mention also possess acumen and understanding of the Indian market trends, play the markets to your advantage.

When you deal in derivatives, you are essentially buying a promise from the original owner of the asset to transfer ownership of the asset rather than the asset itself. As in the case of futures contracts, option contracts can also be settled by delivery of the underlying asset or cash. Simply put, when you invest in derivatives, you actually place a bet on whether the value of the asset represented will increase or decrease by a certain percentage and within a set period of time. They take risk to earn profit by buying low and selling high, or by first selling high and later buying low. Speculators are the high risk takers. The person who attempts to profit from inefficiencies in price by making transactions that offset each other is an Arbitrageur. Derivative contracts seek to transfer these risks from an individual who is not comfortable with the risk to the one who is. However, unlike futures, cash settlement in option contract includes the difference between the strike price and the price of the underlying asset either at the time of contract expiry or at the time of exercising the option. Further, an option that is exercisable on or before the expiry date is called American option and one that is exercisable only on expiry date is called European option. Therefore, derivatives are merely contracts or bets that get their value from existing or future prices of underlying securities.

On the other hand, in a futures contract, you are obligated to buy or sell the asset at the end of the contract date. But a word of caution to retail investors, invest in derivatives only after taking care of your financial needs and as an avenue of diversifying your portfolio. This is what forms a typical Derivative Market. Derivatives are financial instruments that derive their value from other existing asset classes. But like every other investment decision, we need to understand them clearly and discover how best to use them to our advantage. Derivatives are merely profits that you should earn and not returns that you should bank on. As Indian markets are experiencing one of their cyclical volatile phases, derivatives, may to some of us, seem a lucrative option. This was introduced to increase liquidity volumes in certain segment of options.

Thus, in a series of articles that follow, we will discover and decipher the world of derivatives, the jargon used to communicate and the indicators that define possible successes or profits. Hedgers are cautious players who protect themselves from risk by closely watching price movements and sell as soon as they reaches their optimum price, thus getting an assured price for the stocks. This promise gives you tremendous flexibility and is by far the most important trait that appeals to investors. However, unless you totally understand the vagaries of this market, proceed with caution to make profits and not losses. Currently all the options traded on NSE Exchange are European in nature. The options contract allows you the right but not the obligation to buy or sell the concerned asset at a predetermined price within or at end of a specified period. In general, hedgers use futures for protection against adverse future price thereby looking to reduce risk for their holdings and interest.

We trade in a market that allows us complete flow of information and freedom to trade according to our instincts. Derivatives are used to hedge risks and for speculative trades; and active markets need the equal participation of both such investors. He typically makes his profit by buying low in one market and selling high in another. Arbitrageurs keep market prices stable and reducing possible exploitation of prices. The most common types of derivatives that you are likely to come across are futures, options, warrants and convertible bonds. An option to buy is called as a call option and option to sell is called put option. An options contract gives you the right to buy or sell an asset at a set price on or before a given date. To begin with, let us understand derivatives and what they mean.

There are three types of participants in a derivatives market: Speculators, Hedgers and Arbitrageurs. The seller is then obligated to settle the option as per the terms of the contract or when the buyer exercises his right to buy. We hear or read about them every day. As the value of a stock may rise or fall, an exchange rate may swing in favour of one currency or the other, the price of a commodity may increase or decrease, and so on; it means speculating on forward, future prices, placing an option on possible fluctuations or any other such contract made for the possible realisation of those pre determined values of financial assets or any index of securities. Derivatives are popular given their flexibility, returns and their potential to provide market watchers with indicators of market sentiments. Derivatives however, are different from equity shares that we hold. From the days of badla trading to the more recent foray into the UK equity through the FTSE100 Index, the Indian equity derivative markets have come a long way indeed. They are typically the most experienced market players who make fast decisions. The Exchanges, however, have a stringent framework for risk control and minimizing loss of money.

So, get started now. Windows that lets you trade, view latest quotes, track portfolio and market movements, analyse market trends, get live research calls, and do much more instantly. BSE and the NSE. If you are not a Kotak Securities customer, you can still use this application as a guest and start tracking the market!