What is the advantage of trading in futures rather in cash market?
- better margin
- extreme liquidity compared to cash
- can short for longer tim
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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.
-Samarth (vrdnation.com)
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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
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To further Samarth’s point, the STT on CNC in the middle is worst, takes the charges to 873