Two more stocks will take part in the country’s high octane futures & options (F&O) segment in the March series, according to Stock Exchange News on Wednesday. This is added to the four entries mentioned above. According to NSE Circular, India’s Renewable Energy Development Agency (IREDA) and Tata Technologies (Tatatech) will be able to trade with futures and options in the March series.
Previously, the Stock Exchange announced that it has added four shares to its derivatives segment: Amara Raja, IIFL Finance, Patanjali and Titagarh Rail.
The current February Series derivative contracts are scheduled to end on February 27th.
The next monthly series (March F&O series) will begin on Friday, February 28th.
What are derivatives?
A derivative or derivative transaction transaction is the buying and selling of financial contracts that extract value from underlying assets such as stocks, indexes, currency pairs, or goods, as is known in market terminology.
Derivative trading allows participants to infer the price of the underlying asset without actually owning it in the portfolio. This makes derivative transactions more risky than spot transactions that are done in cash and lead to actual delivery of security.
Simply put, derivative contracts extract prices from fluctuations in the price of the underlying asset.
Sebi has been educating investors on the risks associated with derivatives…
The Securities and Exchange Commission (SEBI), the capital markets regulator in India, has conducted many researches over the years, and has published numerous reports highlighting the real risks associated with futures and options trading.
Read again: “Don’t do daytime trades unless you have…”: Ajay Bagga’s valuable advice
Last year, Sebi released data from its research to point out the harsh reality of everyday trading.
With the exception of three, all others suffered losses in 203, of the 10 domestic traders, the study found.
This is why many market experts warn that new investors will indulge in intraday trading.
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