You are on page 1of 33

A step by step guide to trading in Future & Options

Experience fast, easy, transparent and hassle-free trading with ICICIdirect.com!

No paperwork No regulatory hassles • No delays in execution of orders

Step 1: Log on to www.icicidirect.com To start trading, you need to login by clicking on the Login button.

.Step 2: Login Enter your user ID and password and log in to the ‘Trading’ screen.

click ‘SELECT ACCOUNT’ as shown.Step 3: Click to select account On the ‘Trading’ page.NPNRO account only. NRIs can trade in F&O through the Non PINS NRO . (According to regulatory guidelines.) . To trade in F&O. you should have sufficient funds in your NPNRO account.

Step 4: Select account Select your NPNRO account and F&O-Trading as shown and click Select. .

You have now navigated to the F&O Trading page .

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. To do so. you need to allocate funds in the F&O segment from your Non-PINS NRO account. . click ‘Modify Allocation’ as shown.

80. 9.178.Step 5: Allocation of Funds Say you want to add Rs. This will transfer Rs.78 to the Futures & Options segment. Rs.178.78 from your net withdrawal balance to gross allocation. . Add the corresponding amount. select the drop down shown and then click Submit.80. 9.

Limit = (Allocation +Amount receivable by you – Amount payable by you) . in Limit page section as shown below. You can see your purchasing power in this section.The corresponding allocated amount would get reflected .

you select FUTURES as product & NIFTY as stock code. this would land you to the screen shown in page 14 of this document. .To know about Lot Size. Say for example. as shown. click ‘Stock List’. 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. Initial Margin Percentage and Minimum Margin Percentage for all F&O scrips.

the margin requirement is calculated as Rs. at Rs.Calculation of Margin Requirement for F&O Visit the ‘Know Your Margin’ page by clicking ‘Know Your Margin’. as shown.218 to buy 1 lot (50 units for NIFTY)of Futures Contract for NIFTY MAY. . 23. Fill the corresponding entries as per the product type and click Select Contract In the following example. 3.752.

If not. you can get the code from the Find a Symbol link ➢Select the product as Futures and click Select Contract . enter it in ‘Stock Code’.Step 6 : To place orders ➢Click ‘Place Order’ as shown ➢If you know the code of the option.

Step 7: Contract Details You may select the desired contract that you want to buy. . For example. You may also add these stock codes to ‘My Favourites’ so that on your next log-in you can select them from that list. if you want to buy the NIFTY May contract. as shown. click Buy.

In F&O.Step 8: Place an order in Futures ➢Select the desired quantity to be traded. the quantity size will be 50 ➢You may put the limit order at your desired price by selecting the Order type as ‘Limit’. you can trade in quantities that are in multiples of lot sizes only. Say you want to buy 1 lot of NIFTY Futures. Then click Submit . during market hours. where you can verify the order details and confirm the order placed ➢You may also set the Stop Loss Trigger Price. The order confirmation screen then appears. Or else. Click ‘Explain’ for details . In this case. you may set the Order Type as ‘Market’ to execute the order at the market price.

select the corresponding dates and click 'Go'. click 'Order Book'. Select the product as 'Futures' . .Step 9:View Order Book To view the status of the orders placed .

On the resulting page. You can see the trade date. price. quantity.Trade Book For F&O Click ‘Trade Book’. contract description. . brokerage and order reference as shown below. you will be able to view the details of executed trades only and not all the Orders. action. value.

. to square off the orders placed for profit/loss or to maintain the margin on positions. If the margin on your positions falls close to the minimum margin. you can add the margin amount by clicking Add Margin. This step is required to avoid automatic squaring off by the system due to shortage in minimum margin requirement. Click Square Off to place an opposite position / square off order to the initial position order ➢The minimum margin is the margin that should be maintained at all points of time to retain your position. click ‘Open Positions’ ➢On the ‘Open Positions’ page. select the product as ‘Futures’ and click Go.Step 10 : Squaring off or to add margin ➢Once the orders are executed.

➢On clicking Square Off on the ‘Open Positions’ (previous) page. click Submit to proceed for order confirmation ➢After order confirmation. . ➢After filling the details of quantity and price . the square off order for this contract would be SELL order as shown below. where you need to fill the specifications of the square-off order. where now you can see the details of the original as well as the squared off orders and their status. you can visit the order book by clicking ‘Order Book’. you would land on the following page. ➢Here in our example of 1 lot of NIFTY MAY Futures contract bought at level of 3572 .

enter it in ‘Stock Code’. Option Type as Call and click Select Contract . you can get the code from the Find a Symbol link ➢Select the product as OPTIONS. If not.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.

strike price. click Buy. the ➢exchange will introduce contracts in each month. click Get Quote . To get a quote. 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. Price fluctuations result in a new contract being introduced by the exchange from time to time ➢This page shows the expiry dates. For Options.➢You would have three different-month contracts in each underlying.

the quantity size will be 50 ➢You may put the limit order. Click Explain for details . you may select the Order Type as ‘Market’ to execute the order at the market price.Step 2 : Place an order ➢Select the desired quantity to be traded. during market hours. you can trade in quantities that are in multiples of lot sizes only. The order confirmation screen then appears. Say you want to buy 1 lot of NIFTY Options. at your desired price by selecting the Order Type as ‘Limit’. In this case. Then click Submit . Or else. where you can verify the order details and confirm the order placed ➢You may also set the Stop Loss Trigger Price. In Options.

Similar to the Futures segment. All stock options can be exercised before expiry whereas index options can be exercised at expiry only. If margin on positions falls below the minimum margin. details of executed trades in 'Trade Book' and also square off or close existing orders and book profits / loss by clicking 'Open Positions'. you can add the margin amount by clicking the Add Margin link. select the corresponding dates and click Go Step 5 :After the orders are executed.select the product as OPTIONS. the minimum margin is the margin that should have maintained at all points of time to retain your position . If you have sold the option. squaring off a contract can be done any time during the validity of the contract ➢If you have sold an Option. you can view the status of the orders placed by clicking ‘Order Book’. click ‘Open Positions’ ➢Select the product as OPTIONS and click Go. you can square off the contract any time during the validity of the contract by placing buy order for the contract initially sold . Step 3 & 4 :In order book & trade book . 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. However. This step is required to avoid automatic squaring off by the system. to square off the orders placed for profit/loss or to maintain the margin on positions.

where now you can see the details of the original as well as the squared-off order and their status . you can visit the order book by clicking Order Book.➢On clicking Square Off. 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. 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. on the Open Positions (previous) page. you would land on the following page.

towards the daily settlements carried out. .Cash Projection For F&O Click ‘Cash Projections' The page would then give the details of the debits or credits made into your account.

whether unrealized or realized of all contracts that are traded in your account for the duration selected by you. click View Details .Portfolio Details For F&O •On the ‘Portfolio Details’ page. along with the exchange and the product •It also shows you the profit/loss. Select the Product and click on View •To view the details of the contracts. you can view the details of the transactions that are already in your portfolio details.

(* ICLICK-2-GAIN is currently for UAE. Weekly Derivatives. Roll over Monitor. Bahrain and Oman) .Research Products for F&O Daily Derivatives. ICLICK-2-GAIN*. etc.

Taxation for NRI -F&O •Derivatives income for NRIs is treated as profit/loss from business income •Applicable taxes will be deducted at source for transactions entered into through www. SEBI Turnover Charges and Stamp Duty are treated as cash outflow and deducted from profits achieved to arrive at net cumulative profit for calculation of TDS.icicidirect. Transaction Charges. Securities Transaction Tax. Service Tax. .com •Intra-month set-off between profits and losses for deduction of taxes •TDS is blocked during the calendar month on the cumulative net profit on the derivatives portfolio The cumulative net profit is derived as: ➢Futures Profit/Loss on square off End-of-Day (EOD) Mark-to-market Profit/Loss ➢Options Premium receivable on writing of option contracts Premium payable on buying of option contracts Profit on exercise Loss on assignment Profit/Loss on square off Brokerage.

Taxation for NRI -F&O The blocked TDS amount can be seen on the page: F&O Limit Page > Usage of Limit > Group ID 9. TDS is nil if there is a cumulative net loss. . The tax amount is uncrystallized/blocked during the month as it can change on account of profit/loss on further transactions.

.Taxation for NRI -F&O The TDS amount is crystallized / pay-in is done at the end of the month. The crystallised TDS amount can be seen on the page: F&O > Cash Projections page > NRI's TDS Projection link.

To know more about NRI F&O (account opening / registration for F&O.com → FAQ's (Customer Service section)--> NRI FAQ---> NRI FAQ (Derivatives – Futures & Options) .icicidirect. brokerage charges etc) Please visit our FAQ section at our website using the following path: www. taxation . settlement. trading.

.

While due care has been taken in preparing this Demo. or use by. delayed or incomplete information nor for any actions taken in reliance thereon. any person or entity who is a citizen or resident of or located in any locality. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate. where such distribution. publication. The contents herein above are not directed or intended for distribution to. state.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. country or other jurisdiction. regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction. availability or use would be contrary to law. . Kindly read the Risk Disclosure Documents as prescribed by the regulators /exchanges carefully before investing.