A step by step guide to trading in Future & Options

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$tep %& 'og on to www.icicidirect.co To start trading, you need to login by clicking on the 'ogin button.

$tep (& 'ogin Enter your user ID and password and log in to the Trading screen.

$tep )& Clic# to select account On the Trading page, click $E'EC* ACCO+"* as shown. (According to regulatory guidelines, !Is can trade in "#O through the on $I % !O & account only. To trade in "#O, you should ha'e su((icient (unds in your $ !O account.) $ !O

$tep ,& $elect account %elect your "-".O account and F&O-*rading as shown and click $elect.

/ou ha0e now na0igated to the F&O *rading page

*.A2I"3 I" F+*+.E$ F+*+.E$ A (uture is a legally binding agree*ent to buy or sell a (inancial instru*ent so*eti*e in (uture where in +uantity (lot si,e) and deli'ery ti*e (e-piry date (i-ed) .ontracts are standardi,ed and trading is centrali,ed To start trading in "#O, you need to allocate (unds in the "#O seg*ent (ro* your account. To do so, click 1odify Allocation as shown. on&$I % !O

$tep 4& Allocation of Funds

%ay you want to add !s. /,01,230.30 to the "utures # Options seg*ent. Add the corresponding a*ount, select the drop down shown and then click $ub it. This will trans(er !s. !s. /,01,230.30 (ro* your net withdrawal balance to gross allocation.

The corresponding allocated a*ount would get re(lected , in 4i*it page section as shown below. 5ou can see your purchasing power in this section. 4i*it 6 (Allocation 7A*ount recei'able by you 8 A*ount payable by you)

To know about 4ot %i,e, Initial 9argin $ercentage and 9ini*u* 9argin $ercentage (or all "#O scrips, click $toc# 'ist , as shown, select the $roduct Type ("utures or Options) and click 5iew. $tep6 & *o place orders fro $toc# 'ist

5ou can select the product # stock code na*e in which you would like to trade. %ay (or e-a*ple, you select ":T:!E% as product # I"T5 as stock code, this would land you to the screen shown in page 2; o( this docu*ent.

Calculation of 1argin .e7uire ent for F&O <isit the =now 5our 9argin page by clicking 8now /our 1argin, as shown. "ill the corresponding entries as per the product type and click $elect Contract

In the (ollowing e-a*ple, the *argin re+uire*ent is calculated as !s. >?,>20 to buy 2 lot (@1 units (or I"T5)o( "utures .ontract (or I"T5 9A5. at !s. ?,3@>.

$tep 6 & *o place orders .lick -lace Order as shown I( you know the code o( the option, enter it in %tock .ode. I( not, you can get the code (ro* the "ind a %y*bol link %elect the product as "utures and click $elect Contract

$tep 9& Contract 2etails 5ou *ay select the desired contract that you want to buy. "or e-a*ple, i( you want to buy the I"T5 9ay contract, click :uy, as shown.

5ou *ay also add these stock codes to 9y "a'ourites so that on your ne-t log&in you can select the* (ro* that list.

$tep ;& -lace an order in Futures %elect the desired +uantity to be traded. In "#O, you can trade in +uantities that are in *ultiples o( lot si,es only. %ay you want to buy 2 lot o( I"T5 "utures. In this case, the +uantity si,e will be @1 5ou *ay put the li*it order at your desired price by selecting the Order type as 4i*it. Or else, during *arket hours, you *ay set the Order Type as 9arket to e-ecute the order at the *arket price. Then click $ub it . The order con(ir*ation screen then appears, where you can 'eri(y the order details and con(ir* the order placed 5ou *ay also set the %top 4oss Trigger $rice. .lick Explain (or details

$tep <&5iew Order :oo# To 'iew the status o( the orders placed , click AOrder :oo#A. %elect the product as A"uturesA ,select the corresponding dates and click A3oA.

*rade :oo# For F&O .lick *rade :oo# . On the resulting page, you will be able to 'iew the details o( e-ecuted trades only and not all the Orders. 5ou can see the trade date, contract description, action, +uantity, price, 'alue, brokerage and order re(erence as shown below.

$tep %= & $7uaring off or to add

argin

Once the orders are e-ecuted, to s+uare o(( the orders placed (or pro(itBloss or to *aintain the *argin on positions, click Open -ositions On the Open $ositions page, select the product as "utures and click 3o. .lick $7uare Off to place an opposite position B s+uare o(( order to the initial position order The *ini*u* *argin is the *argin that should be *aintained at all points o( ti*e to retain your position. I( the *argin on your positions (alls close to the *ini*u* *argin, you can add the *argin a*ount by clicking Add 1argin. This step is re+uired to a'oid auto*atic s+uaring o(( by the syste* due to shortage in *ini*u* *argin re+uire*ent.

On clicking $7uare Off on the Open $ositions (pre'ious) page, you would land on the (ollowing page, where you need to (ill the speci(ications o( the s+uare&o(( order. Cere in our e-a*ple o( 2 lot o( I"T5 9A5 "utures contract bought at le'el o( ?@3> , the s+uare o(( order (or this contract would be %E44 order as shown below. A(ter (illing the details o( +uantity and price , click $ub it to proceed (or order con(ir*ation A(ter order con(ir*ation, you can 'isit the order book by clicking Order :oo#>, where now you can see the details o( the original as well as the s+uared o(( orders and their status.

*.A2I"3 I" O-*IO"$ %elect "utures .ontract $tep %& $elect an Option contract .lick -lace Order as shown I( you know the code o( the option, enter it in %tock .ode. I( not, you can get the code (ro* the "ind a %y*bol link %elect the product as O$TIO %, Option Type as .all and click $elect Contract

5ou would ha'e three di((erent&*onth contracts in each underlying. "or Options, the e-change will introduce contracts in each *onth. $rice (luctuations result in a new contract being introduced by the e-change (ro* ti*e to ti*e This page shows the e-piry dates, strike price, the *ini*u* lot si,e and the last traded price (4T$) (always shown in ter*s o( the pre*iu*) I( you want to buy an Options contract, click :uy. To get a +uote, click 3et ?uote

$tep ( & -lace an order %elect the desired +uantity to be traded. In Options, you can trade in +uantities that are in *ultiples o( lot si,es only. %ay you want to buy 2 lot o( I"T5 Options. In this case, the +uantity si,e will be @1 5ou *ay put the li*it order, at your desired price by selecting the Order Type as 4i*it. Or else, during *arket hours, you *ay select the Order Type as 9arket to e-ecute the order at the *arket price. Then click $ub it . The order con(ir*ation screen then appears, where you can 'eri(y the order details and con(ir* the order placed 5ou *ay also set the %top 4oss Trigger $rice. .lick Explain (or details

%i*ilar to the "utures seg*ent, you can 'iew the status o( the orders placed by clicking Order :oo# , details o( e-ecuted trades in A*rade :oo#@ and also s+uare o(( or close e-isting orders and book pro(its B loss by clicking AOpen -ositionsA. $tep ) & , &In order book # trade book ,select the product as O$TIO %, select the corresponding dates and click 3o $tep 4 &A(ter the orders are e-ecuted, to s+uare o(( the orders placed (or pro(itBloss or to *aintain the *argin on positions, click Open -ositions> %elect the product as O$TIO % and click 3o. .lick $7uare Off to place an opposite position B s+uare o(( order to the initial position order A buyer o( an Option can e-ercise or s+uare o(( the initial order. All stock options can be e-ercised be(ore e-piry whereas inde- options can be e-ercised at e-piry only. Cowe'er, s+uaring o(( a contract can be done any ti*e during the 'alidity o( the contract I( you ha'e sold an Option, the *ini*u* *argin is the *argin that should ha'e *aintained at all points o( ti*e to retain your position . I( *argin on positions (alls below the *ini*u* *argin, you can add the *argin a*ount by clicking the Add 1argin link. This step is re+uired to a'oid auto*atic s+uaring o(( by the syste*. I( you ha'e sold the option, you can s+uare o(( the contract any ti*e during the 'alidity o( the contract by placing buy order (or the contract initially sold

On clicking $7uare Off, on the Open $ositions (pre'ious) page, you would land on the
(ollowing page, where you need to (ill the speci(ications o( the s+uare&o(( order In our e-a*ple , we had initially bought the call option at pre*iu* o( !s 01, and we are now placing a s+uare o(( order ( %E44 in this case) at pre*iu* o( !s /1

A(ter (illing the details, click $ub it to proceed (or order con(ir*ation A(ter order con(ir*ation, you can 'isit the order book by clicking Order :oo#, where now you
can see the details o( the original as well as the s+uared&o(( order and their status

Cash -roAection For F&O .lick Cash -roAections@ The page would then gi'e the details o( the debits or credits *ade into your account, towards the daily settle*ents carried out.

-ortfolio 2etails For F&O On the $ort(olio Details page, you can 'iew the details o( the transactions that are already in your port(olio details, along with the e-change and the product It also shows you the pro(itBloss, whether unreali,ed or reali,ed o( all contracts that are traded in your account (or the duration selected by you. %elect the $roduct and click on 5iew To 'iew the details o( the contracts, click 5iew 2etails

.esearch -roducts for F&O Daily Deri'ati'es, Deekly Deri'ati'es, !oll o'er 9onitor, I.4I.=&>&EAI F, etc.
(F I.4I.=&>&EAI is currently (or :AE, Gahrain and O*an)

*axation for ".I -F&O Deri'ati'es inco*e (or !Is is treated as pro(itBloss (ro* business inco*e

Applicable ta-es will be deducted at source (or transactions entered into through www.icicidirect.co* Intra&*onth set&o(( between pro(its and losses (or deduction o( ta-es TD% is blocked during the calendar *onth on the cu*ulati'e net pro(it on the deri'ati'es port(olio The cu*ulati'e net pro(it is deri'ed asH "utures $ro(itB4oss on s+uare o(( End&o(&Day (EOD) 9ark&to&*arket $ro(itB4oss Options $re*iu* recei'able on writing o( option contracts $re*iu* payable on buying o( option contracts $ro(it on e-ercise 4oss on assign*ent $ro(itB4oss on s+uare o(( Grokerage, %er'ice Ta-, %ecurities Transaction Ta-, Transaction .harges, %EGI Turno'er .harges and %ta*p Duty are treated as cash out(low and deducted (ro* pro(its achie'ed to arri'e at net cu*ulati'e pro(it (or calculation o( TD%.

*axation for ".I -F&O The blocked TD% a*ount can be seen on the pageH "#O 4i*it $age I :sage o( 4i*it I Eroup ID /. TD% is nil i( there is a cu*ulati'e net loss. The ta- a*ount is uncrystalli,edBblocked during the *onth as it can change on account o( pro(itBloss on (urther transactions.

*axation for ".I -F&O The TD% a*ount is crystalli,ed B pay&in is done at the end o( the *onth. The crystallised TD% a*ount can be seen on the pageH "#O I .ash $roJections page I $roJection link. !IAs TD%

To know *ore about !I "#O (account opening B registration (or "#O, trading, settle*ent, ta-ation , brokerage charges etc) $lease 'isit our "AK section at our website using the (ollowing pathH www.icicidirect.co* "AKAs (.usto*er %er'ice section)&&I !I "AK&&&I !I "AK (Deri'ati'es 8 "utures # Options)

2isclai er& The contents *entioned herein abo'e are solely (or in(or*ational purpose and *ay not be used or considered as an o((er docu*ent or solicitation o( o((er to buy or sell or subscribe (or securities or other (inancial instru*ents. Dhile due care has been taken in preparing this De*o, I&%ec and a((iliates accept no liabilities (or any loss or da*age o( any kind arising out o( any inaccurate, delayed or inco*plete in(or*ation nor (or any actions taken in reliance thereon. The contents herein abo'e are not directed or intended (or distribution to, or use by, any person or entity who is a citi,en or resident o( or located in any locality, state, country or other Jurisdiction, where such distribution, publication, a'ailability or use would be contrary to law, regulation or which would subJect I&%ec and a((iliates to any registration or licensing re+uire*ent within such Jurisdiction. =indly read the !isk Disclosure Docu*ents as prescribed by the regulators Be-changes care(ully be(ore in'esting.