Which is better

General
1

Which is better !!
A stocks futurez lot is of 800 .
Is it advisable to trade in futures or trade 800 shares ??

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2

@aob,

apart from many other, practical differences that you might be interested,

  1. Futures have higher leverage than Stocks (broker dependence)
  2. Stocks more than a day (delivery, at full cost !) have higher taxes (STT etc), futures more than a day is same margin (less cost)
  3. Stocks (if intraday) taxes (STT etc) are slightly higher than futures (chk with brokerage calc)
  4. Stocks short-sell position is limited intraday only
  5. Stocks position you can carry for long term, Futures expires in a month (except rollover)
  6. for Stock, you can reduce lot size (for available funds, and reduces risk, later can average price with received funds in case of fall), you can only increase lot size for futures (increases risk)
  7. reverse applies for partial profits for Stocks, but you should have acquired more than one lot of futures to do so

for freshers, overall, Futures are riskier than Stocks

7 Likes
3

It’s a tradeoff scenario:

Stock trading :
Cons: requires higher margin, charges are higher, cannot carry a sell position
Pros: can exit partially, less volatile, better to start off with, usually better spread

Futures trading:

Cons: can exit only in lots, more volatile, requires some experience
Pros: requires lesser margin, charges are lower, can carry a sell position

2 Likes
4

It is advisable to start SIP with ICICI prudential life insurance

5

Pl read Zerodha varsity before trading futures

6

Depends on what way you look at it. And it depends on how you’ll be trading.