For a new trader, Nifty Futures or Options? Which is recommended?

General
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For a new trader, which would be easier to learn and trade with lesser risk (among Futures & options).?

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I'm quite tempted to say neither, considering the person is new to trading....but if you were to force me for an answer I'd say Nifty Futures. 

Futures is a straight forward instrument with relatively less factors affecting it. Whereas options is a multi dimensional instrument with many factors working for and against it.

The common pit fall for a newbie option trader is the - limited risk and unlimited upside potential carrot. Though a simple statement to make, it takes years of trading experience to realize the powerful message its trying to convey.   

Good luck.

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i would say if u trade intraday…liquid options are good way to leverage…
positionally futures are always better… unless u have a very big target in a well thought out time frame

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Options and Futures are sure way to loose money as these instruments are like gambling where in you place your bet.

The charts and indicators are forecasting tools for your wishful thinking.

In the end its the broker who is making money, not you.

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In the high volatility market, if the market goes opposite to your trade, then the options loss much faster than futures. Even after few days, if the market comes back to where you taken the trade, still there is no much hope for your option position comes back to the same entry price, in such case futures are safer.

So i highly recommend to take futures trading.

Even after all these suggestions, if you want to go for options trading, then i recommend options writing instead of buying.

Good luck.

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my vote is with futures, as you can roll over it… :slight_smile:

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options are a great asset class, provided you understand it. no matter which asset class you wish to trade, you will have to spend atleast 3 years to become consistently profitable in it… best wishes

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I would like to add, For a person with exposure to equity markets, which of the above would be a better choice to start with.

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Thanks for the question. I was thinking of asking it!

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I wanted to say, a trader with exposure to equities. I added a small comment to my question so that your initial answer doesn’t sound out of context. Given the new information. Due you have other suggestions? or still go with Nifty Futures.
From what you say, when there is limited risk why not start with Nifty Options?

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Hi Mystique - thanks for the addendum. I would still suggest Nifty Futures. Limited risk is usually in the form of premium paid. No suppose you end up with a bad trade you will end up losing your premium. In other words you are losing 100% of the capital deployed on the trade. A few consecutive bad trades is good enough to wipe your account clean.

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I agree with you Karthik.
Options are multi dimensional and few bad trades could wipe off the account.
The carrot thingy, that it is so compelling to trap anyone.

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Lol :slight_smile:
“Carrot thingy” is bang on!

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… it applies to me also… I already have bad times with options :frowning: