Companies don’t announce corporate actions arbitrarily. Each one serves a specific purpose rewarding shareholders, raising capital, improving stock liquidity, or restructuring the business. Reward shareholders – Dividends distribute surplus profits directly to you. A bonus issue does the same without paying out cash. Improve stock accessibility – When a share […]
What Are Corporate Actions?
A corporate action is any decision made by a company that brings a material change to its stock or affects its shareholders. When a company announces a bonus issue, pays a dividend, splits its stock, or goes through a merger, each of these is a corporate action. As a shareholder, […]
What Is a Periodic Call Auction and Why Are Some Stocks Traded in This Category?
Periodic call auction is a special trading mechanism where stocks trade in scheduled auction sessions instead of continuous trading throughout the day. SEBI introduced this to reduce volatility in illiquid stocks. Which stocks move to this category? Stocks that meet specific illiquidity criteria are moved to periodic call auction, including […]
What Is the Impact of Corporate Actions on F&O Contracts?
When a company announces a corporate action like a bonus issue, stock split, or dividend, it affects the share price. Since F&O contracts are based on the underlying stock price, these actions impact your open F&O positions too. How does it work? For corporate actions like stock splits, bonus issues, […]
Can I Use Pledged Shares as Margin for F&O Trading?
Yes. With Samco’s StockPlus , you can pledge your existing shares and mutual fund holdings to generate collateral margin and use it for F&O trading without needing any cash balance in your trading account. How does it work? You pledge your shares through Samco Star Back Office. Once pledged, a […]
Can I Do Intraday Trading in F&O?
Yes, you can trade F&O intraday. In fact, a large portion of daily F&O volume on NSE comes from intraday traders who open and close positions within the same trading session. How to place an intraday F&O order When placing your order on the Samco app, select Intraday as the […]
Can I Carry Forward My Futures Position to the Next Day?
Yes, you can carry forward a futures position to the next day and even hold it until expiry if you choose to. Here is what you need to know. How to carry forward a futures position When placing your order, select NRML as the product type. NRML positions are not […]
What Are MIS and NRML Orders in F&O Trading?
When you place an F&O order on Samco, you will notice two product types – MIS and NRML. Choosing the right one determines whether your position is treated as intraday or carried forward to the next day. NRML NRML stands for Normal. When you place an order as NRML, you […]
What Is the Lot Size in F&O Contracts?
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? […]
What Is Margin in F&O Trading and What Is SPAN and Exposure Margin?
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 […]