Professional Documents
Culture Documents
to trading in
Future & Options
No paperwork
No regulatory hassles
No delays in
execution of orders
Step 2: Login
Enter your user ID and password and log in to the Trading screen.
TRADING IN FUTURES
FUTURES
A future is a legally binding agreement to buy or sell a financial
instrument sometime in future where in quantity (lot size) and delivery
time (expiry date fixed)
Contracts are standardized and trading is centralized
To start trading in F&O, you need to allocate funds in the F&O segment from your Non-PINS NRO
account. To do so, click Modify Allocation as shown.
The corresponding allocated amount would get reflected , in Limit page section as shown below.
You can see your purchasing power in this section. Limit = (Allocation +Amount receivable by
you Amount payable by you)
To know about Lot Size, Initial Margin Percentage and Minimum Margin Percentage for all F&O
scrips, click Stock List, as shown, select the Product Type (Futures or Options) and click View.
Step6 : To place orders from Stock List
You can select the product & stock code name in which you would like to trade. Say for example,
you select FUTURES as product & NIFTY as stock code, this would land you to the screen shown
in page 14 of this document.
In the following example, the margin requirement is calculated as Rs. 23,218 to buy 1 lot (50 units
for NIFTY)of Futures Contract for NIFTY MAY. at Rs. 3,752.
On clicking Square Off on the Open Positions (previous) page, you would land on the
following page, where you need to fill the specifications of the square-off order.
Here in our example of 1 lot of NIFTY MAY Futures contract bought at level of 3572 , the
square off order for this contract would be SELL order as shown below.
After filling the details of quantity and price , click Submit to proceed for order confirmation
After order confirmation, you can visit the order book by clicking Order Book, where now you
can see the details of the original as well as the squared off orders and their status.
TRADING IN OPTIONS
Select Futures Contract
Step 1: Select an Option contract
Click Place Order as shown
If you know the code of the option, enter it in Stock Code. If not, you can get the code from the
Find a Symbol link
Select the product as OPTIONS, Option Type as Call and click Select Contract
You would have three different-month contracts in each underlying. For Options, the
exchange will introduce contracts in each month. Price fluctuations result in a new contract
being introduced by the exchange from time to time
This page shows the expiry dates, strike price, the minimum lot size and the last traded price
(LTP) (always shown in terms of the premium)
If you want to buy an Options contract, click Buy. To get a quote, click Get Quote
Similar to the Futures segment, you can view the status of the orders placed by clicking Order
Book, details of executed trades in 'Trade Book' and also square off or close existing orders and
book profits / loss by clicking 'Open Positions'.
Step 3 & 4 :In order book & trade book ,select the product as OPTIONS, select the corresponding
dates and click Go
Step 5 :After the orders are executed, to square off the orders placed for profit/loss or to
maintain the margin on positions, click Open Positions
Select the product as OPTIONS and click Go. Click Square Off to place an opposite position /
square off order to the initial position order
A buyer of an Option can exercise or square off the initial order. All stock options can be
exercised before expiry whereas index options can be exercised at expiry only. However, squaring
off a contract can be done any time during the validity of the contract
If you have sold an Option, the minimum margin is the margin that should have maintained at all
points of time to retain your position . If margin on positions falls below the minimum margin, you
can add the margin amount by clicking the Add Margin link. This step is required to avoid
automatic squaring off by the system. If you have sold the option, you can square off the contract
any time during the validity of the contract by placing buy order for the contract initially sold
On clicking Square Off, on the Open Positions (previous) page, you would land on the
following page, where you need to fill the specifications of the square-off order
In our example , we had initially bought the call option at premium of Rs 80, and we are now
placing a square off order ( SELL in this case) at premium of Rs 90
After filling the details, click Submit to proceed for order confirmation
After order confirmation, you can visit the order book by clicking Order Book, where now you
can see the details of the original as well as the squared-off order and their status
To know more about NRI F&O (account opening / registration for F&O, trading, settlement, taxation
, brokerage charges etc)
Please visit our FAQ section at our website using the following path:
www.icicidirect.com FAQ's (Customer Service section)--> NRI FAQ---> NRI FAQ (Derivatives
Futures & Options)
Disclaimer:
The contents mentioned herein above are solely for informational purpose and may not be used
or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities
or other financial instruments. While due care has been taken in preparing this Demo, I-Sec and
affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate,
delayed or incomplete information nor for any actions taken in reliance thereon. The contents
herein above are 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 I-Sec and affiliates to any registration or licensing requirement within such jurisdiction.
Kindly read the Risk Disclosure Documents as prescribed by the regulators /exchanges carefully
before investing.