What is the advantage of trading in futures rather in cash market?
- better margin
- extreme liquidity compared to cash
- can short for longer tim
One more (very) important difference is that in STT (Securities Tax), which is half in Futures as compared to Cash. It makes a lot of difference on the bottom-line in a long run.
For me, since I am retailer and this market is operated from top to bottom, margins can never be a good point, its best way to become nude
Also, brokerage matters less if u have big profit or loss in your trade, compared to that
For me the below two points differentiate whether to take Futures position or Cash:
Futures - Benefit is you can carry short position overnight, in cash u need to close short same day
Cash - Benefit is I can book partial profits to be safe. In future if u buy 1 lot, u cant sell half lot to safeguard ur profits, in cash u can do safe trading by booking profits at regular intervals based on number of shares
To further Samarth’s point, the STT on CNC in the middle is worst, takes the charges to 873