Sensex- Nifty Code

Future & Option Trading The only way to work in derivatives segment ( future & option) is to hand over a cheque to broker and let him run account according to inability of his dealer and whim of analyst in brokerage house. At 44, it was the first time in Jai’s life that he decided to take advantage of leveraging. The main rule before opening a future & option a/c is simple. ONE MUST BE PREPARED TO LOSE MONEY Or ONE SHOULD PUT ONLY THAT MUCH MONEY, ONE CAN AFFORD TO LOSE. Another rule, It should never be more than 10% of your investment. However, Jai found the last rule to be a ridiculous rule. Because when you are trying to earn money, you cannot let your money rest in lower return instruments. However, he always followed it; it is just that when you put less money in such an account, you can be careless about it; when you put a big amount of money, you are vigilant about it. 17 February, 2006 CIPLA & TITAN It was another Friday and Jai had first encounter of how fortunes are made and lost on a single day in f&o without informing the client. Wrong, client is never told about huge money that could have been made; he is always told when his account lands in trouble. So far, his accounts had shown normal profit & loss of Rs 4000 to 6000 on daily basis in each account. On that day, he was informed of a loss of Rs 60,000 in a single day in Jaya’s account. Jai was indignant, how one could lose Rs 60,000(30%) on Rs 2 Lakh account? he called for the contracts which were handed promptly, broker’s office are always ready with bills for losses, as they have to be recovered and Jai was considered a good client. They were handed to him by Manoj Saxena, a young MBA from Lucknow University. Jai found his head swimming at large number of stocks traded on that day; he had specifically told them not to take more than two positions in a day. The date on the bill read 13 Feb, 2006. Suddenly, he realised that he had not been informed about the loss which took place on Monday.