Monday, August 29, 2016

The success mantra for benefiting out of the market is futures& options.

Imagine an investor who buys ,say   a stock for 500 Rs for a Capital of 5000.

This implies he is getting 10 shares of the stock/security.

But if a person invests in futures he gets to 10 times the invested capital i.e, 50,000 .So to an exposure of around 100 shares. 

Consider the situation that the share/stock price moves up by 5 rupees then the investor gets a profit of 500 who invests in futures .