Stock Future Tips for intraday trading

Click here to Enjoy Live SHARE MARKET Commentary and for NSE & MCX

Stock Future Tips Intraday Foretells Endless Opportunities in Futures Markets

Overview
The futures markets have a world of opportunities as well as advantages. However, majority of stock traders are unaware of the same. One common problem with them is that they don’t look closely into it. Regarding investment, the futures markets is the ultimate destination. If you ask why then we will give you three big reasons. The first is that in terms of returns, you get high rates. The second is that the possibilities for trading in the futures markets are infinite. And the third is the liquidity option which is simply outstanding. These are just a few benefits and there are more. Let us tell you one thing and that is in contrast to stocks, futures are better in many ways. In our stock future tips intraday, we shall cite some information which you may not be aware of regarding futures markets.

Futures Vs Stocks
In terms of volatility, stocks are more volatile than futures which many stock traders may find it hard to digest. The futures markets do have limit moves more commonly referred to as ‘monster moves’ but when it comes to the dollar, there is greater risk in the stock market. Let us give you another case in our stock future tips intraday. You want to become a stock trader and so you are on a lookout for a good market. To fulfill that objective, you have to check thousands of stocks. On the other hand, the number of major futures markets is below 50 but there is no need for you to check out all of them. You just have to examine 12 markets or so to get going in a nice way. You won’t believe the fact that professional traders depend on three markets only.

Let’s come to another interesting aspect about trading in stocks and futures. To trade in the stock market, you have to make full payment. Futures markets trading are done on margin money. You just have to make a margin deposit and in return you get control over a commodity the value of which is much larger than what you invested. When you compare the return on stocks with the return on futures, you will find that your ROI on futures is enormous. That is the leverage in futures but can you notice any ills in it.
If you are a stock trader then you must be aware about stock manipulation. Lot of stocks gets overvalued in the stock market. As a result, many small investors are left empty handed at the end of the day. That is not the case in futures markets. Here trading is done on physical goods with inherent value. So it is impossible to hype or overvalue. Let us go back again to the second aspect to put forth a point. Compared to stocks, it is cheaper to trade in futures. Here you can control goods or commodities worth thousands of dollars by paying margin money of just a few thousand dollars.

Actually in futures exchange, you are required to control a contract and for that you have to maintain margin money in your account. This enables you to use your capital in other ventures. Another great thing about futures markets is that you can come in to trade with any budget. There might be penny stocks in the stock market but they are very risky and therefore not worth the risk. The fact is that it is expensive to trade in the stock market. In futures markets, you get the chance to trade in small goods to big goods depending on your budget. That is really inspiring for new and small investors.

As evident from the recent happenings in the financial market, stocks can go bust anytime. That is not the case with futures. Here trading is done on real commodities which have a value. At the most prices may decrease but the contract maintained by you shall always have an underlying value. In terms of trading opportunities and liquidity, futures markets fare much better than stock markets. It is easy to buy and sell in futures but not so in stocks. Regarding liquidity, big stocks may increase the volume of shares on particular big days but it pales when compared with an average trading day in futures markets.

Click here for Indian stock market