I am new to intraday spot market trading and have been doing well till now.I noticed there are no others trading in spot markets but only in Future& Options derivative market.Could you give the reason why you are not trading in Spot market.
Which kind of stocks you trade in spot market?
F&O stocks like Maruti, Titan etc or random spot stocks like Bombay Dyeing, KIOCL etc
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I trade in Equity share spot market or cash market and not in F&O as F&O is not spot market but derivative market.Yes I do trade in all type of shares including regular and F&O type.
I think if you trade stocks like Maruti, Titan, etc, it is better to do in spot market (unless you are big trader with huge quantity trades).
First thing you can choose your quantity, second best thing is you can sell partial. If i buy one lot, i have to sell the whole lot, but if i buy 100 stocks i can book profit for 50 stocks now and still track the price.
I feel most people who prefer F&O are those who have big trade sizes. Also F&O stocks have more steady movement.
If you are trading non-derivative stocks like Bombay Dyeing etc these kind of stock will jump to 10%, then you buy it, then suddenly it will drop to 4%. So this volatility is very risky in spot market stocks.
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Also the obvious reason people choose F&O segment is due to the ability to short stocks over a period of time. So if a case like PNB fraud happens, you just short PNB and sit and enjoy.
In spot markets, you need to close the short on same day.
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But more profitability ay shortest time is spot market I guess.Ya it’s true that it’s a lot riskier than derivative market.
I do trade both derivative and cash/spot market, in spot market , trading opportunity’s ( options ) are limited , spot market is more profitable during , main market moving on up side ( during bull phase )
See this post of mine in another thread.
hopefully you will not waste your time on day trading.