Understanding the Different Segments of Indian Stock Market


The Indian stock market is the best place to earn good money if you have an effective strategy. For a trader in the Indian Stock market, there is choice of Trading in the Cash Segment, Futures Segment and Options Segment. Each of these segments, have different characteristics and there are different rules to trade in different segments.
If you want to trade in the Futures Segment and Options Segment with excellence, you can do so by trading on the basis of Stock Futures Tips and Stock Option Tips.
The simplest segment of the Indian Stock Market is Cash Segment. In the Cash segment, all the transactions are done in cash. That is the transactions are done on current price as well as equivalent amount of cash.


The things are different in the case of futures segment. In the futures segment the stocks have a future price of the expiry. The future price of the stocks also fluctuates continuously. In the futures segment, generally a group of stocks or lots are bought and sold. The size of the lot or number of shares in the lot is dependent on exchange. The lot size of similar shares can be different on different exchanges.
The third segment for trading in the Indian Stock Market is Options Segment. In the Options Segment, the put or the call off the shares is bought and sold. If depending on the price movements, the option of the stock is expected to go up, the call option is bought. Similarly if the price of the option is expected to go down, the put of the stock is bought.
There are many traders, for whom trading in the Futures Segment is the best. There are many others who feel that trading in the Options segment is best. Different strategies are used to trade in the different segments. The rules to trade in the Futures Segment are different from the rules to trade in the Options Segment.
For the futures segment trading, the trend following is the best strategy to trade. The trend in the Futures market can be uptrend, downtrend or the sideways trend. There are many indicators in the Technical analysis, which can help in trend following and placing the buy as well as sell calls accordingly.
For an average trader, trading in the Cash market is simple and trading in the futures market is complicated. However, if the trader is having interest in trading in the futures market or options market, they can take the help of stock futures tips and Stock option Tips from expert advisers.

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