This is a judgemental question, which may appeal too many but few may discard it completely.
And there is nothing wrong about it. Because, World / universe are full of multiple choices because not one fit all strategy is workable all the time.
However, we are sharing our own experience and thoughts to help you decide by presenting all the possibilities and facts before you.
According to us Futures is best Trading Instrument in comparison to Cash Intraday & Options.
Here are my reasons to justify above statement.
Table: Explaining Plus & minus points of various Trading Segments
SL. |
Parameters | Futures | Options |
Cash Intraday |
1 |
Leverage on Invested Capital |
Reasonable |
Over Leveraged | Uniformity lacks |
2 | Trading Participation & volume | High | Low |
Low |
3 |
Expiry Carry Forward Facility | Least Expensive | NOT Possible |
Expensive |
4 |
Standard Lot Size Trading | YES | YES |
NOT Possible |
5 |
Ask Bid Trading Liquidly | Reasonable | Uniformity lacks |
Reasonable |
6 | Trading Choice & Analysis | Highly Focused | Multiple Choice |
Least Focused |
All over analysis suggest that Positional Trading in Futures Segment is risk worth taking in comparison to Cash Intraday & Options Trading.
Few more points to ponder:
~ An intraday position has to be closed before 3:20pm every working day, irrespective of anything. Because not all the movement come
~ Options start losing value during last 8 days of expiry, even though prices are going in favour because of time value of Money principle.
~ One can’t ride whole price swing if trading either in Intraday &/or Options segment.
Whereas, above limitations are not there in Futures.
Short Term Capital Gain Tax is uniformly applicable on all three segments.
Most importantly, this notion that Futures need high capital is wrong. Because, what you are paying as span margin to broker is nothing but a deposit which is 100% safe.
Lastly, I agree that some time Futures generate unbearable losses also but again that depends on one’s actual capacity & confidence on Market movements. In other words, no RISK no REWARD.
Therefore, our conclusion is that if one is willing to take Stock market Risk then better to take in Futures only. Intraday and Options are not worth taking at-all.