Question 1

How much margin is required to trade in Idfc First Bank Limited futures?

Accepted Answer

The margin required to trade in Idfc First Bank Limited futures depends on contract value, volatility and the exchange-mandated margins. The margin includes SPAN margin and exposure margin, which is decided by the exchange and updated daily. The total margin is not fixed, it may increase during high volatility or around major corporate events like earnings.

Question 2

How is the margin for Idfc First Bank Limited futures calculated?

Accepted Answer

The margin for the Idfc First Bank Limited futures is calculated using a risk-based system comprising SPAN margin and exposure margin. Total margin = SPAN margin + Exposure margin. SPAN margin covers potential losses in uncertain scenarios, and the exposure margin provides additional safety.

Question 3

Are Idfc First Bank Limited futures better than index futures?

Accepted Answer

Idfc First Bank Limited futures and index futures serve different objectives. Idfc First Bank Limited futures are ideal for those looking for stock-specific opportunities and higher volatility. Whereas index futures offer diversification and lower risk compared to stock futures, as they track a basket of shares. Idfc First Bank Limited futures may deliver higher returns, but also carry a higher risk compared to index futures.

Question 4

Can I exit a Idfc First Bank Limited futures before expiry?

Accepted Answer

Yes, you can exit Idfc First Bank Limited futures at any time before expiry by an opposite trade (sell if you bought, buy if you sold). Most traders close the trade before expiry to avoid demat settlement obligations.

Question 5

Who should invest in Idfc First Bank Limited futures, beginners or experienced traders?

Accepted Answer

Idfc First Bank Limited futures are best suited for experienced traders who understand the working mechanisms of derivatives. As they are familiar with terms like leverage, margin, and risk management. Beginners should gain experience with cash market stocks and index instruments before putting money in stock futures.

Question 6

What happens if I hold Idfc First Bank Limited futures till expiry?

Accepted Answer

If you hold Idfc First Bank Limited futures till expiry, the contracts are settled at a final settlement price determined by the exchange on the expiry day. Any profit or loss is credited or debited to your trading account on settlement day. However, the traders who wish to take delivery must keep a cash balance in the trading account to meet the physical settlement obligations.

Question 7

Is the Idfc First Bank Limited futures settlement cash settled or physically settled?

Accepted Answer

Idfc First Bank Limited futures contracts are physically settled. It means buyers must take the delivery of shares on expiry, and sellers must deliver shares from their demat account. Adequate funds and or shares must be available to avoid penalties at the time of final settlement.

Future Name	Current Price	Change %	Volume	Average Traded	OI

Idfc First Bank Limited Futures

FAQs