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Futures Trading in Stock Market

Futures are financial derivatives that represent an agreement between two parties to buy or sell an asset at a predetermined price on a future date. These contracts are standardised and traded on exchanges, covering various assets such as stocks, commodities, and indices. Traders and investors use futures for hedging against price fluctuations or speculating on future market movements.

 

Futures contracts enable the trading of an asset at a fixed price on a specified future date. These contracts outline key details such as contract size, expiration date, and price terms. Understanding what are futures in the stock market helps traders make informed decisions regarding risk management and market speculation.

 

In order to have a comprehensive understanding of futures trading, one must have a thorough knowledge of derivatives first. Derivatives are financial contracts that derive their value from the price movement of some other financial instrument. This provides the foundation for understanding futures trading meaning.

 

Futures are a type of derivative contract for the purchase or sale of an asset on a future date at a predetermined price. That asset can be shares of a company, a commodity, coffee, silver, gold, etc. In a futures contract, one party is a buyer (the one having a long position) and the other is a seller (the one having a short position).

 

The buyer of futures agrees to buy a certain quantity of a commodity or securities, and the seller agrees to provide it. Futures contracts are traded on the Exchange. As time goes by, the price of the contract changes based on the price of the underlying asset. This fluctuation creates profit or loss for the trader.

 

Futures trading is an obligatory agreement between a buyer and seller for trading derivatives as per the agreement. Here, both buyers and sellers are bound to honour the contract, making it a key feature of futures trading meaning.

 

In order to have a comprehensive understanding of futures trading, one must have a thorough knowledge of derivatives first. Derivatives are financial contracts that derive their value from the price movement of some other financial instrument.

 

So, futures are nothing but a type of derivative contract for the purchase or sale of an asset on a future date at a predetermined price. That asset can be shares of a company, a commodity, coffee, silver, gold, etc. In a futures contract, one party is a buyer (the one having a long position) and a seller (the one having a short position), where the buyer of Futures agrees to buy a certain quantity of a commodity or securities and the seller agrees to provide it. Futures contracts are traded on the Exchange. As time goes by, the contract’s price tends to change based on the price of the underlying asset. This frequent change in the price of the contract also creates profit or loss for the trader. Futures trading is an obligatory agreement between a buyer and seller for trading of derivatives according to the agreement. Here both buyers and sellers are obligated to honor the contract in futures trading.

What is Futures Trading?

What are stock futures? Suppose you have purchased a futures contract based on an underlying stock that consists of 100 shares. The expiration date of the contract is January 01 for Rs. 100 per share. You pay the necessary margin amount and place the order. Let us assume on January 01; the stock is trading at Rs. 120. Since the stock is trading at a higher value, here is a chance for you to make a profit.

You exercise your stock market futures contract, which entitles you to purchase 100 shares for Rs. 100 each. You then sell these shares at their current price, i.e., Rs. 120 and instantly make a profit of Rs. 20/share (minus the margin money paid). Your profit gets credited to your account after making necessary deductions in the form of commissions and associated brokerage fees. Suppose you incur a loss as the share prices drop to Rs. 90. In such cases, the amount gets deducted from your cash balance in the trading account.

What are Stock Futures?

Stock futures are derivative contracts that allow traders to buy or sell a specific stock at a predetermined price on a future date. These contracts are legally binding agreements between buyers and sellers, ensuring the trade happens at the agreed price, regardless of market fluctuations. Stock futures have standardised terms, including lot size, expiry date, price quotation, tick size, and settlement method.

They are commonly used for hedging against price volatility or for speculative trading. Investors use stock futures to lock in prices, manage risk, or take advantage of potential price movements in the underlying stock

What is the futures market and types of futures?

The futures market is a financial marketplace where buyers and sellers enter into contracts to buy or sell an asset at a predetermined price on a specified future date. It is commonly used for hedging risks and speculating on price movements. Futures are standardised contracts traded on regulated exchanges and can be based on commodities, currencies, or financial instruments. The main types of futures include commodities like grains and metals, financial instruments like indices and bonds, and other sectors like energy and livestock.

Grain futures

Grain futures are contracts to buy or sell agricultural products like wheat, corn, and soybeans. These are essential for farmers and producers to hedge against price fluctuations due to unpredictable weather or changing demand.

Currency futures

Currency futures involve contracts to exchange one currency for another at a set price on a future date. They are widely used by importers, exporters, and forex traders to manage foreign exchange risk.

Livestock futures

Livestock futures cover commodities like live cattle, lean hogs, and feeder cattle. These contracts allow farmers and meat processors to lock in prices, helping them manage costs and revenues more predictably.

Financial futures

Financial futures are based on assets such as stock indices, interest rates, and Treasury bonds. They are popular among institutional investors to hedge against market movements or speculate on macroeconomic trends.

Metal futures

Metal futures include contracts for trading base and precious metals like gold, silver, copper, and aluminium. These are used by manufacturers and investors to hedge against price changes or gain exposure to the metals market.

Food and fibre futures

These futures deal with commodities such as coffee, cocoa, sugar, cotton, and orange juice. Traders use them to manage supply chain risks, while investors use them to speculate on seasonal and global demand patterns.

Energy futures

Energy futures include contracts for oil, natural gas, gasoline, and heating oil. They are widely used by refineries, transportation firms, and traders to protect against volatile energy prices caused by global supply-demand shifts.

How does Futures Trading work?

The futures market attracts a variety of financial players, including investors, speculators, and companies. These participants may seek to physically accept the delivery of the commodity or supply it based on the terms of a futures contract.

Futures contracts are often used by hedgers to fix the buy or sell price of an underlying commodity on a specific date. This helps protect against potential price fluctuations and ensures stability in transactions.

To illustrate how futures trading works, let’s consider a jar of beans. If the price of beans rises, a major food processor reliant on beans for their business would need to pay the farmer or dealer more. To hedge against this risk of price increase, the processor might buy beans futures contracts to cover their exposure to price changes. This proves advantageous for the buyer if the price of beans goes up.

Similarly, in the stock market, individuals can hedge stock prices using stock futures. Futures contracts can be purchased for individual stocks or indices to mitigate the risk of market volatility.

Notably, the buyer of a futures contract does not need to pay the full contract value upfront. Instead, only an initial margin is required, which can be managed conveniently using a futures trading app.

Futures contract is used by Hedgers to fix the buy or sell price of the underlying commodity on a specific date.

To illustrate how futures trading works, let’s consider a jar of beans. In the event of the price of beans going up, a major food processor who is dependent on beans to run the business will have to pay the farmer or the dealer more. For protection against this sudden rise in the price of beans, the processor may want to “hedge” his risk by buying beans futures contracts to cover the risk of price changes. It will prove beneficial for the futures contract buyer in case the price of beans goes up.

Similarly, in the stock market too, people can hedge stock prices through stock futures. It can be purchased now on stocks or on an index. The buyer of a futures contract does not have to pay the full amount of the contract beforehand. Only initial margin is to be paid using a future trading app.

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How to Start Future Trading?

Starting with futures trading involves a step-by-step approach to understand the market dynamics and mitigate risks. Beginners should first educate themselves on the functioning of the futures market, the associated terms, and the risks involved.

  1. Learn the Basics: Familiarise yourself with key concepts such as margins, leverage, contract specifications, and expiration dates. Platforms like NSE and MCX offer detailed guides on futures contracts available for trading. Start with a demo account to gain practical exposure without risking real capital.
  2. Choose a Broker: Select a broker offering access to the futures market with reasonable margin requirements and a user-friendly trading platform. In India, several brokers provide online futures trading services with tools for research and analysis.
  3. Develop a Strategy: Before entering the market, design a plan that aligns with your risk tolerance and financial goals. Focus on futures trading strategies like hedging, speculation, or spread trading. These approaches help manage volatility and maximise returns.
  4. Begin Trading: After completing the prerequisites, start trading with a small initial capital. Monitor your positions closely and maintain discipline to avoid emotional decision-making. Leverage tools like stop-loss orders to manage risks effectively.

Understanding futures trading hours is crucial, as different assets have varying trading sessions. For instance, commodities like gold trade until late evening on the MCX, while stock futures adhere to NSE timings.

Start with Futures Trading Strategy

A robust futures trading strategy is essential for success in the futures market. Beginners can consider strategies like trend following, where traders enter positions based on the prevailing market trend, or range trading, which focuses on buying at support and selling at resistance levels.

Another approach involves hedging, where traders use futures contracts to mitigate the risks of adverse price movements in their portfolios. For instance, if you own shares of a company and expect short-term volatility, selling futures contracts for the same stock can offset potential losses.

The flexibility offered by futures trading hours allows traders to implement strategies that align with their availability. For instance, evening trading hours on the MCX enable working professionals to trade commodities like crude oil or natural gas after traditional market hours.

Always backtest and refine your futures trading strategies using historical data before applying them in live markets. This helps identify potential risks and optimise for better results.

Types of Futures Traders

There are two types of Futures traders - Hedgers and Speculators:

Hedgers: Hedgers are investors who buy derivative instruments to safeguard their capital from losses. They use futures trading to lock in prices and protect against adverse price movements. For example, a jewellery manufacturer may purchase gold futures to hedge against rising gold prices, ensuring stable production costs despite fluctuations in the futures market.

Speculators: Speculators aim to profit from the rise and fall of derivative contract prices. Their buying and selling decisions are driven by market conditions and the demand-supply scenario of the derivative. Speculators rely on futures trading strategies to anticipate price movements and maximise profits, often leveraging the extended futures trading hours for flexibility.

Other prominent types of traders include Arbitrageurs and Day Traders. Arbitrageurs exploit price differences between the futures market and the spot market, earning risk-free profits by simultaneously buying and selling assets in both markets. Their success depends on precise timing and a deep understanding of futures trading meaning.

Day Traders focus on intraday price movements, entering and exiting positions within the same trading session. By leveraging high liquidity and long futures trading hours, they can execute quick trades. Understanding the type of trader you aspire to be is crucial for designing effective futures trading strategies aligned with your financial goals.

How Futures Trading Differs from Other Financial Instruments?

The key difference between Futures and other financial instruments is:

  • Futures contract does not have intrinsic value, its value is derived from that of the underlying asset
  • Futures contract is traded in stock market
  • Futures contract has an expiry date which is the last Thursday of the month
  • Futures contract is transacted in lots

Advantages of Futures Trading

One of the biggest advantages of Futures Trading is that there’s no risk of default. The clearing corporation on the stock exchange gives a counter-guarantee for every trade of futures in the stock market. This ensures that sufficient margin is maintained by the respective counterparties in the contract to avoid the risk of default. Trading in futures lets you take position in larger contract size by just paying the margin amount.

Disadvantages of Futures Trading

  • More complex than trading in stocks
  • Leveraged positions can lead to magnified losses as well
  • Daily Mark to Market adjustment requires the trader to have enough capital available to keep the position intact. So, it’s not possible to maintain a futures contract with smaller capital.

Pros and Cons of Futures Trading in Table

Pros

Cons

High leverage for increased profit potential

High risk due to leverage magnifying losses

Useful for hedging price volatility

Requires careful monitoring and expertise

Flexible futures trading hours for global assets

Risk of margin calls in volatile markets

Standardised contracts ensure transparency

Losses can exceed initial investment

Difference between options and futures

While both options and futures are derivatives, they differ significantly in terms of rights, obligations, and risk exposure. Futures are binding contracts where both parties must fulfil the agreement at expiry. In contrast, options give the buyer the right—but not the obligation—to buy or sell an asset.

Futures require a margin deposit and can lead to unlimited losses or gains, depending on price movements. Options, however, limit losses to the premium paid. Futures are more suited for hedgers and institutional traders, whereas options are popular among retail investors for their flexibility.

Comparison: Futures vs. Options

Feature

Futures

Options

Contract Type

Obligation to buy/sell

Right, not obligation

Risk Exposure

Unlimited loss/gain potential

Limited to premium paid

Premium Payment

No premium; margin required

Premium paid upfront

Ideal For

Hedgers, institutions

Retail traders, short-term strategies

Settlement

Must settle at expiry

Can expire worthless or be exercised

Few Things to Keep in Mind While Trading Futures

  • Clear concept of leverage – Understanding the working of leverage is very important while trading in futures. One of the biggest benefits of a futures market is that you needn’t pay the full price of futures contract’s value to take a long or short position. They just need to pay a portion of the price known as margin. Having said that, traders need to be very cautious in the usage of leverage. A slight deviation in the direction of prices can either bring them profits or result in major losses.
  • Use of stop Loss orders – Traders should operate skilfully and know when to get in and out of a trade. Proper planning is of utmost importance and that’s where stop Loss orders play a significant role. Stop Loss orders are orders to buy or sell at a definite price to limit losses in a trade.

Futures are used by traders and investors to form an opinion on the price movements of the underlying asset.

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

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What are futures in the stock market?

Answer Field

Futures in the stock market are financial contracts to buy or sell an asset at a predetermined price on a future date. These contracts are often based on the value of company shares or stock indices, such as the S&P 500 or Nasdaq.

How will a futures trade work?

Answer Field

Futures trading involves two parties agreeing to exchange an underlying market asset for a fixed price at a specified future date. These trades are based on the futures contract terms, which include the strike price, expiration date, and contract size.

How can I buy futures?

Answer Field

To buy futures, place an order with a broker by specifying the size, number of contracts, strike price, and expiration date. Brokers offer various futures contracts in the futures market, allowing you to choose based on your preferences.

Is the future better than stocks?

Answer Field

Whether futures are better than stocks depends on your experience and risk tolerance. Futures trading offers leverage and extended trading hours but involves higher risks. In contrast, stocks provide ownership benefits like dividends and long-term growth, with fewer tax complexities.

What style of trading is the safest?

Answer Field

Among different trading styles, long-term trading is considered the safest. It minimises risks compared to more complex strategies like futures trading and allows investors to focus on steady growth and stability over time.

What is the margin in futures trading?

Answer Field

The margin in futures trading is the deposit a trader must maintain with their broker to open and sustain a position in the futures market. It ensures the trader honours the contract and protects against losses. There are two types: initial margin, required to open a position, and maintenance margin, which must be maintained to hold it.

Can futures trading be done on weekends?

Answer Field

While the futures market is closed on weekends, it operates nearly 24 hours a day from 6:00 p.m. (ET) on Sunday to 5:00 p.m. (ET) on Friday. These extended futures trading hours provide flexibility to manage positions during events outside regular stock market hours.

What is trading futures?

Answer Field

Futures trading involves buying or selling financial contracts that obligate the buyer to purchase, and the seller to deliver, an asset at a predetermined price and future date. This trading occurs on exchanges and is used for speculation, hedging, or managing price risk.

What is a futures trading example?

Answer Field

An example of futures trading: A trader buys a futures contract for 100 shares at £50 each. If the share price rises to £60, they profit £1,000. Conversely, if the price falls to £40, they face an equivalent loss.

Is futures trading profitable?

Answer Field

Futures trading can be profitable but carries significant risk. With the use of leverage, it offers potential for high returns but also substantial losses. Success requires a deep understanding of the futures market, strong risk management, and effective futures trading strategies.

What are the best futures trading hours?

Answer Field

The best futures trading hours are often during high market activity, particularly when the U.S. stock market opens at 9:30 a.m. (ET) and closes at 4:00 p.m. (ET). However, traders can leverage extended hours on the CME Globex exchange for added flexibility.

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Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.