InvestorQ : Is trading in intraday cash market is less risky as compare to F&O market?
Sumit made post

Is trading in intraday cash market is less risky as compare to F&O market?

Answer
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Purvesh answered.
1 year ago


Sumit, Trading in the cash market is always a safer bet as compared to F&O segment. In the cash market, people have the liberty to keep the scrips for Intraday, Short-term or even for many
years. In the case of F&O, you have to sell the scrip in speculative time or carry forward the same positions. I am feeling the only set-back is the amount
you pay for Cash market as compared to F&O. In the cash market, you need to pay the entire amount as per the quantity bought but F&O, you have to pay margin amount depending upon the contract.
Major differences:
1) In cash Market, trading is happening as per quantity while in F&O its lot size.
2) Cash Market is less risky as compared to F&O.
3) Cash Market scrips can be kept for many years.
4) In Cash Market, you become a shareholder of a company as compared to F&O.
5) In Cash Market, you receive dividend, bonus etc.
I hope, you will agree with my views.