Are you looking to make some side income which involves low investment and risk? The share market is the best way to earn money in a short span. In this market one can go for trading in various options offered by the market. Many people think of delivery or intraday trading when it comes to the share market, but there are several other options like derivatives. In this option, a trader can find various alternatives like options and futures. Both of them are not in the form of spot trades such as delivery or intraday rather based on contracts. So, if you are a trader who would like to trade in F&O, you need to use NSE F&O span margin calculator first to check if it can be a viable option for you or not. With the help of this calculator you can know about the amount, you need to pay the broker. If one does not know how to use this calculator he can ask an expert for the same or check on the internet from where he can have complete information about the same. Different broking companies also offer this calculator on their site which can be easily used and understood.
Information on Margin Money and account opening:
People who have can bear a huge amount of risk and want to make huge profit then this option could be really beneficial. Also a trader has much time to form a tenure which could make huge profit and also get the limit. If the price hits the limit, a trader gets the profit, in case the trader wants to have more profit he may go for a contract which will be valid for a specific period of time. Here the margin money depends on several factors. For an example, the calculation of the same duration of the made contract, size of contract and item for dealing are few factors which affect the contract’s value. Different types of contracts have different requirements of margin money which one needs to know in advance so that he need not suffer from any adverse effect later.
If we talk about the process of opening the trading account, it is quite similar to the share trading with some primary differences. A share trading can be done for several hours or sometimes for life time. If a trader goes for some delivery based trading then the duration is fixed such as a month, two month or more. With a particular period of time an individual has liberty to finish trade with profit or loss. Also, here a trader gets the chance to square the trade which is also a double edged sword since traders may or may not have profit.
There are several primary rules which need to be followed in share trading. In this form of trading an individual may have time to square off trade but it does require monitoring at the same time since the contract’s value may go down which could lead to huge loss.