Cash Vs Future Vs Options Trading | How to Earn More Profits from Stock Market #Trading? - YouTube

Well, this video is very important for you all because if you are training in a stock

market and you don't know whether you should trade in cash or future or options. Where

do we get maximum profit? So watch this video till the end. If you are new and you want

to learn about Finance and the stock market so I will suggest you do subscribe to this

channel right now and press the Bell Icon so that you cannot miss any of the videos

we are going to give you the valuable content. So you are going to learn a lot so we are

going to learn whether to trade in cash or future or options I will make you understand

through it some examples so that this gives you clarity let's take an example you have

invested 1 crore rupees and bought a house as soon as you bought a house you come

to know that there there is going to be a downturn in the market. In which Apartment

you take the flat there are 500 such flats not being sold. let's assume that they are also

of Rs.1 crore. So the inventory has stood at Rs 500 crore for the builder. So now you see

that market is going to be down and real estate also is getting down if you have purchased

a house for Rs 1 crore and you feel like it is gonna be 80 lakh. You will be at a loss

of Rs.20 lakh. Is it possible instead of buying first, to sell it for one crore? And when

it becomes for 80 lakh then you will buy it. You would say that sir what are you talking

about it doesn't happen like that.Buy it at a higher rate and sell it at the same rate

at which you bought it. You would say is opposite is possible but it is not but I want to tell

you it has a possibility.Think from this angle that the builder sold you one crore.And you

gave one crore. When it is 800000 and you need money, the builder tells you again that I

will buy 8000000. Who got the profit of 2000000? Profit made by the builder. Because he had taken one

crore and gave you 80 lakh rupees out of the same 10000000. You would say yes it is possible

but in reality, it cannot be possible.Because the people who are, if they buy one thing

expensive. It becomes cheap and then if they need money, they have to sell it to them for

less money. And then they lose. And the opposite is not possible. The reverse happens in the

stock market. When we talk about the cash market then you can only buy but when we talk

about the future and options market. We can sell first and buy later. You will have this

option. This means that you have bought your favorite stock. If the price breaks and you sell it then you will have a loss. You will profit only on the

condition when the share price goes up. In futures and options, you can earn even when

the share price goes down. In the stock market, you feel like a recession has come. So the

loss will be for those who are trading in the cash. Or in futures and options trading

opposite the trend. But if they're following the trend. So he will make the money. In

the cash market. 2nd you can buy any number of shares but in the future or options, there

is a lot. Now lot means let's take an example of Reliance you will see the Reliance lot

of 250. Share is of rupees 250 then you have to buy 250 shares now you will say the investment

is of 7 lakh. Then you will buy it in cash but in the future, you will have leverage let me

show you something it will give you clarity if you go to margin calculator in upstox if

you do not have a Demat account there is a link in the caption comment box for Demat

account you can open for free, lifetime AMC does not charge from this, people are also

earning money from referring ringtone earn. So you can open a Demat account in upstox

for free. Now I'll show you. quantity is 250 because the lot size is 250 total margin required

is 154000. Where 700000 were 1.5 lakh? The margin required is 154000 according to 250

shares. so this will be an investment. in that your investment was 7lakh. Investment

of 700000 at one place and 154000 at one place. If it talks about options we buy again Because

you will feel that the price will increase. Now you bought a call option you can buy or

sell as well. Call options are bought when the market is going up. If the premium of the

the option is 90 and the lot is 250 so the investment is 22500 in the options market. There

were 154000 investments and here 7 lakh in the cash market. so the margin required

is low in options if the does not get successful in options so the maximum loss would be the

premium which you pay. i.e 22500 is the maximum loss. If we talk about charges here, I told

you this because people don't consider charges. If you are buying shares in big amounts, so you

have to understand brokers and charges. let me show you this. You will understand it better. Now

you see in this broker calculator. we are talking about 250 shares in the delivery section that

we have bought 250 shares. After buying 250 shares and selling them for 2900 this will

show you net profit and loss in which 23255 is the profit. But now you see that the Security

transaction tax is Rs. 1425 and the total charges are approx Rs.1700 but if you trade

the same thing ie future and you buy 250 shares in future also if you buy it for 2800

and sell it for 2900 so the profit will be around 23000 or 24000 around but here why

is 24000 because here charges are low-security transaction tax is Rs 72 only and total taxes

and charges are Rs. 182 only.In delivery When you were buying shares, you had to pay a more

amount of charges. So people do not think about this much but Overall it makes a difference

in everything and if you see this in options and quantity is the same (250) and bought

this is for Rs.90 and if we assume that it has grown then the premium of the option will also

increase which ultimately becomes Rs 190 and if happens again then you earned Rs.24000

again. How much you have invested rupees 22500 and here the taxes and charges are Rs.116

so in options, the charges are comparatively less. So now I taught the important thing

of we see net P & L you have earned around 24800 by investing 22500. There you pay only

the premium. In the future, you have done the same trading. the margin was more required

but still, you have earned around 24000 or similarly, you have earned 23000 or 24000

in equity also if the share price has increased by Rs.100 so here P & L is 23000 because charges

are more.Now, what do you understand here? Charges are more in the cash market but in

long run, if you have bought it today for Rs.2800 it's not necessary that you sell it

for Rs2900it may happen that reliance will become Rs.5000 in 5 years. If the shares become

5000, then the money will also double. So you carry it for the long term and you have

the carry forward option is here. But in the future, you have to execute your order before

expiry; similarly, in options, you have to execute it before expiry. After that, you can

now take a position again, that is a different matter. But if you trade only then everyone has

a different capacity and Everyone has different money. Some people can afford 7 lakh rupees

so they can trade in cash but if we want to trade for Rs 150000 then we can trade in futures

but if we have the same vision then it can be with rupees 22500 which will bring the

same profit. So now we have understood cash future or option that if you trade then which

segment you're trading Please tell me by commenting and also tell me why you trade. Many people

will get to learn from your comments. so today we have learned about cash versus futures

versus options What are the advantages or disadvantages of trading in it? There is still

a lot to learn in Futures & Options so stay tuned. Will meet you in the next video till

then share this video.This video will clear the doubts of many people. Finally like this

video you can ask questions by commenting I will try to answer those questions in the

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