the biggest losses i booked in stock market

Yes there are fixed lot sizes for many companies which trade in derivatives segment. You can go long/ short on a lot of futures.

You have to pay a stipulated percentage of that future lot value as margin upfront. The margin percent for nifty futures is lesser than that of stock futures.

You can then hold your position for the series and your profit/loss is calculated based on the scrips movement multiplied by the number of shares in the lot.

In case of notional loss you have to keep paying additional margin amount. You have to roll over your futures contract at the end of the series.

Its almost like gambling. Meant for short term traders/ positional traders. High risk high return. Big amount comes in/ goes out.

 

Thanks for clarifying. Definitely not for me. I have allergy to loss

 

haha @Srouta Mukherjee allergy to losses

 

Sir, losses occur in cash segment too.

Derivatives (especially futures) are for those who want to make it big quickly. Since there are fixed lot sizes for every scrip (which is north of 3-4 lakhs each lot) it keeps small and petty traders away.

Its for serious players. Who aspire to earn big money and can also afford to lose big money.

Its true that the losses in futures can tear you apart. But the profits are equally big.

 

Could be just that it's my opinion or an extreme view. Waiting for the day when they'll have water futures in trading.

 

haha...

 

Don't know about commodity futures since I am not into it. But in stock futures mainly good quality and prestigious companies trade in stock derivatives.
(barring a couple of stocks which used to be good earlier and are not doing good now. I guess eventually their presence in derivatives will be ceased. Also, good companies are being added in derivatives on a periodic basis.)
Therefore the quality of the stock futures and equity indices derivative market is very good (not aware about the quality of commodities markets)

 

The water reference wasn't for commodity reference. Just give em anything and they'll give a derivative product for it.

Derivatives aren't for good or prestgious companies but just stocks which will bring good turnover for the exchanges.

 

True. But derivative products for dabba stocks can cause mad roller coaster rides both ways. Good for you if you are on the right side. But if you are caught on the wrong foot... the mad price movement multiplied by the big lot size can make you the next Vijay Mallya in a single day.

Therefore I appreciate and respect the exchanges for atleast keeping mostly low beta and good quality stocks in derivatives, thereby ensuring "quality gambling"

 

You will still be millionaire Dear Saruta Mukerjea.Keep patience, it is round the corner.

 

Thank you Sir for blessing and positive thought

 

Very interesting Topic.... No one intends to make a mistake .... But when an anticipation goes very wrong even after careful consideration... It is our ego that does not allow us to book a loss and exit... We will collect all stories favourable towards the bad company. Averaging by adding more and more to the losing position and the losses snow balls on to a mega disaster. ... I lost big on Hanung Toys

 

One more disaster in the making for me Vedanta ...

 

History repeats in stock markets ... Hanung Toys 2013 profit margins were dwindling ... But There was talk about debt restructuring .... Analysts recommending BUY... What happened after that is History...

 

that is a true sad story. be careful in future with debt restructuring companies.

 

Debt is a two edged sword. If it works well you grow multi folds in a short span of time. Else it will bury you under itself.

But debt is always tricky.. you like a company with good prospects. but it has high debt.. you dont buy it for its high debt.. The company utilises the debt well and becomes a multibagger.. You Regret.

Now you like another company which has good prospects and has high debt. Last time you ignored the company with high debt and it became a multibagger. So this time you decide to try your luck. Things turn worse and the debt swallows the company. Your stock does not become a multibagger. Instead you become a beggar.. You regret.

Outcome of debt is completely unpredictable

 

Your gain is sombody's loss. STOCK MARKET IS A ZERO SUM GAME. Loss and gain are inalienable parts of investment exercise - no can deny that..

 

well said parin.dedt is like a sword hanging over a company. it may kill it ruthlessly.

 

Here goes my story.. Kingfisher airlines made me bankrupt. In 2009 my broker bought for me at 45 rs since I was a offline client. He told a near target of 65 rs. Later all knows what happened.. I sold for 3rs..
After this I am allergic to all airline stocks.... Will never buy jet airways, spicejet, indigo etc even if they are 1000 baggers now also.. # revenge

 

I agree airline stocks should be avoided because it is very dependent on crude oil prices and there is intense competition for low prices.