Author Samco Support

In F&O trading, you cannot buy or sell just one share of a stock or one unit of an index. You have to trade in fixed quantities called lots. The number of shares or units in one lot is called the lot size. How does lot size affect your trading? […]

To trade F&O, you don’t pay the full value of the contract you pay a margin. This margin acts as a security deposit that the exchange holds to cover potential losses on your position. Here’s how it works. What is margin? Margin is the minimum amount you need in your […]

Two of the most common questions before starting F&O trading are how much money you need to get started and whether your broker provides any additional leverage. Here is a clear answer to both. Is there a minimum balance required? Samco does not have a fixed minimum balance requirement to […]

Every futures contract has an expiry date. If you want to continue holding your position beyond expiry, you need to close your current contract and open a new one in the next month. This is called a rollover. How does it work? Say you are holding a Nifty January futures […]

When you trade options, every contract is either a Call or a Put. These are the two basic building blocks of options trading, and understanding what each one does is essential before you start. Call Option A Call option gives you the right to buy an asset at a fixed […]

In equity trading, buy average is straightforward it is the average price at which you bought a stock across multiple purchases. In F&O, it works similarly but there are a few things specific to derivatives that are worth understanding. What is the buy average in F&O? Buy average in F&O […]

Futures contracts in India are available on two types of underlying assets indices and individual stocks. While they work the same way mechanically, there are some important differences between the two. Index Futures Index futures are contracts based on a stock market index like Nifty 50, Bank Nifty, or Sensex. […]

Futures and Options are both derivative contracts but they work quite differently. Here’s how the two compare. Obligation With futures, both the buyer and seller are obligated to honour the contract on expiry. With options, only the seller is obligated the buyer has the right to exercise the contract but […]

Futures and Options commonly known as F&O are contracts that let you take a position on a stock or index at a specific price on a future date. They are traded on NSE and BSE just like regular stocks, but they work differently from simply buying or selling shares. Futures […]