Wednesday, 18 June 2014

COMPARISON BETWEEN CASH AND FUTURE TRADING

1.In the cash segment, one can pick up as many shares one wants starting from just one share but Futures, a trader cannot buy less than the lot size prescribed
2. From an investors point of he should invest in Cash Segment. Since Futures are a trading tool, the risk is also high to a large extent.
3. In Futures, a trader needs to pay 33% tax on the profit. In equity, it is a flat proportion of 10% (short term capital gains) if trading done is within a year and no tax if sold later a year (long term capital gains).............
4. It is value noting that the charge of the shares in the cash segment is typically lower than the Future price. So, if it is available for Rs 50 in the Futures segment, one should get it for Rs 48 in the cash segment.

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