Zebu blog

Tag: stock market

  • Four Things To Consider Before Investing

    Starting your investment journey can be intimidating but is a necessity considering inflation and economic uncertainty. That is why you need a sound investment strategy to help you meet your financial objectives. At Zebu, it is our mission to help every Indian become financially independent and that is why we have platforms that will help you invest wisely. Please get in touch with us to know more.

    At Zebu, an online share broker company it is our mission to help everyone in India become financially independent, we offer the best online stock market trading platform with the best trading accounts.

    Here are four things to think about before choosing an investment strategy.

    Financial Objectives

    Your long-term and short-term financial goals should be the main thing you think about before you choose an investing strategy. Keeping track of such financial goals will help you make smart choices. Some examples of such goals are getting married, going back to school, travelling abroad, and buying a new smartphone.

    For instance, if you want to save up for a trip to your favourite foreign country, a post office deposit or a recurring deposit could be some of the best ways for you to invest. You can put money in either of these accounts at a post office near you.

    Budgeted, near-term cost

    When looking for a way to invest in India, one of the most important things to do first is to figure out how much you expect to spend in the future. These can be things like your child’s wedding, college, or buying a home.

    If you do this, you’ll have a better idea of how much money you need to invest now in order to get enough money back in the future to pay for any upcoming bills.

    Present Expenses

    When looking for the best way to invest, it’s important to start by looking at what you’re already spending. For example, if you don’t have any big expenses like rent, you will have more money to save or invest for the long term.

    But if you have financial obligations that make it hard for you to save much money, it would be better for you to invest in a financial plan that gives you a good return on your money.

    Financial Dependents

    Most people in India don’t think about how their dependents’ finances affect them when they buy an investment plan. Still, you have to do this because you need to have enough investments or savings to meet the financial needs of your dependents as well as your own.

    For example, if you only have two children who depend on you, you probably won’t need to invest as much as someone who also has to take care of their parents, siblings, and children.

    Investment options for short-term goals

    Plan for investment for one year

    If you like to invest for the short term, even three years can seem like a long time. But there are many 12-month investment plans that can also help you avoid market risks. Here are some good short-term investments you might want to think about:

    • Recurring Deposits
    • Fixed Maturity Plan
    • Post Office Deposits
    • Arbitrage Funds
    • Debt Fund
    • Fixed Deposits

    Plan for an Investment for 3 Years

    3-year investment plans are a common type of short-term investment plan. These plans are best for people who want to make a lot of money in a short amount of time. Here are some choices you might want to think about:

    • Liquid Funds
    • Fixed Maturity Plan
    • Recurring Deposits
    • Savings Account
    • Arbitrage Funds

    Plan for 5 Years of Investing

    Even though five years is a long time, in India a five-year investment plan is usually seen as a short-term investment with low market risk. But compared to other short-term investments, the returns on a 5-year investment plan are much higher. So, here are some choices for you to think about:

    • Savings Account
    • Liquid Funds
    • Post Office Time Deposit
    • Large Cap Mutual Fund

    As an online share broker company, it is our mission to help everyone in India become financially independent, we offer the best online stock market trading platform with the best trading accounts.

  • Things To Do Before Becoming A Trader

    When it comes to investing, stock trading gives more weight to short-term profits than long-term ones. It can be dangerous to jump in without knowing what to do.

    How do you trade stocks?

    When you trade stocks, you buy and sell shares of companies to make money off of daily price changes. Traders keep a close eye on these stocks’ short-term price changes and then try to buy low and sell high.
    Traditional stock market investors tend to be in it for the long term, while stock traders focus on the short term.

    If you trade individual stocks at the right time, you can make quick money, but you also risk losing a lot of money. The fortunes of a single company can rise faster than the market as a whole, but they can also fall just as quickly.

    If you have the money and want to learn how to trade, you can trade stocks quickly from your computer or phone thanks to online brokerages.

    Ways to trade stocks

    There are two main ways to trade stocks:
    When an investor makes 10 or more trades per month, this is called “active trading.” Most of the time, they use a strategy that depends heavily on timing the market. They try to make money in the coming weeks or months by taking advantage of short-term events (at the company level or based on market fluctuations) like results, RBI policies and global economic events.

    Day trading is the strategy used by investors who buy, sell, and close their positions in the same stock all on the same trading day. They don’t care much about how the businesses they’re investing in work. The goal of a day trader is to make some money in the next few minutes, hours, or days by taking advantage of price changes that happen every day.

    How to buy and sell stock
    If you’re new to trading stocks, you should know that most investors do best by keeping things simple and putting their money in a mix of low-cost index funds. This is the key to long-term outperformance.

    So, if you want to trade stocks, you need to do five things:

    1. Get a trading account

    To trade stocks, you need to put money into a brokerage account, which is a special kind of account made for holding investments. You can open an account with Zebu in just a few minutes if you don’t already have one. But don’t worry, just because you open an account, you’re not investing your money yet. It just lets you know that you can do it when you’re ready.

    2. Set a stock trading budget

    Even if you’re good at trading stocks, putting more than 10% of your portfolio in a single stock can make your savings too vulnerable to changes.

    If you want to start investing, you could start by putting away Rs 2,000 a month. When you have Rs 2,000, you could put Rs 500 into an investment. Think of the Rs 500 you don’t invest as a parachute. It might not be necessary, but it’s there just in case. Other things to do and not to do are:

    Trade with the money that you can afford to lose.

    Don’t spend money that you need to use soon for things like a down payment or school.

    Cut that 10 percent if you don’t have a good emergency fund and aren’t putting 10 to 15 percent of your income into a retirement account.

    .3. Figure out how to use market orders and stop orders

    Once you have a brokerage account with Zebu and a budget, you can use the website or trading platform to buy and sell stocks. You’ll be given a number of order types to choose from, which will decide how your trade goes. In our guide on how to buy stocks, we explain these in more detail, but here are the two most common types:

    Market order: The stock is bought or sold as soon as possible at the best price.

    Limit order: Buys or sells the stock only at a price you set or higher. For a buy order, the limit price is the most you’re willing to pay, and the order will only go through if the stock’s price falls to or below that amount.

    4. Use a “paper trading account” to get some practice

    Try investing in the market without putting any money in it yet to see how it works.

    Choose a stock and keep an eye on it for three to six months to see how it does. You can also learn about the market with the help of tools like online paper trading. Customers can test their trading skills and build a track record with stock market simulators before putting real money on the line.

    5. Use a good benchmark to measure your returns

    This is important advice for all investors, not just those who are very active. When picking stocks, the main goal is to beat a benchmark index. That could be the Nifty 50 index, which is often used as a stand-in for “the market,” the Sensex, or other smaller indexes made up of companies based on size, industry, and location.

    Measuring results is very important, and if a serious investor can’t beat the benchmark, which is hard for even professional investors to do, it makes financial sense to invest in a low-cost index mutual fund or ETF, which is basically a basket of stocks whose performance is close to that of one of the benchmark indexes.

    And these are the basic dos and don’ts for beginner traders. Stay tuned for more on this subject.

  • What Is Your Risk Profile?

    You must recall your first bike ride. That is the kind of encounter you will never forget. But, while you were enjoying the ride, there is always that one kid nearby who clearly wished he hadn’t had to go through the horrible experience.

    So, while you were ready to accept the risk of riding a bike, your friend would have preferred to stand back and observe. Similarly, some people may be more willing to accept risks than others when it comes to investing. And your risk profile indicates how much risk you are willing to face when investing.


    Risk Profile

    Everyone has different financial objectives in life. That is, your risk tolerance is determined by your financial ambitions as well as your existing financial health.

    Let’s have a look at the various risk profile groups. There are three major kinds –

    The careful investor – this means that you want to take a low risk.

    The average risk-taker – this indicates that you are willing to take a small level of loss in exchange for higher returns.

    The aggressive risk-taker – this indicates that you are willing to take on more risk in exchange for a higher potential return.

    However, you are not required to fit within any of the categories. Depending on your investment objectives, you can choose to participate in all of them.


    Consider the following example.

    When it comes to keeping an emergency fund, you want to invest in something that will provide you with security and liquidity rather than large profits. In that instance, you choose a low risk, low return profile, showing that you are cautious.

    However, if your financial goal is retirement, which could be 25 years away, you can be an aggressive investor. This is because you want to earn a good return over a long period of time. In this case, the high profits would be directly proportional to the risk. Furthermore, because your investment horizon is decades away, risks can be handled in the long run.

    Start by taking care of emergency funds and investments with low-risk investment options. Then, move on to the funds needed for your children’s education and retirement. Next, adjust your risk appetite to invest in stocks building your wealth.


    You can control investment risks in two ways:

    Invest for the long term.
    Regularly invest little sums.

    Some investors try to outperform the market in a relatively short period of time. However, history has shown that short-term investments do not generate the same level of return as long-term ones. Long-term investment works because bull and bear markets provide wonderful opportunities to ride through the highs and lows of cycles while investing in high-return, high-yielding assets.

    Investing in smaller quantities allows you to benefit from rupee cost averaging. This technique ensures that you purchase more shares (or units) when prices are low and less shares (or units) when prices are high. As a result, you can average out your investment costs and deal with market volatility.

    Furthermore, adopting a disciplined approach, such as investing little sums on a regular basis, helps create excellent financial habits that will undoubtedly come in helpful in the long term.

    Investing tiny amounts over time might help your investments develop. All owing to the compounding power. Earnings from stock investments are reinvested, allowing your investments to generate even greater income. So, even if you start with a tiny amount, the longer your money stays invested, the greater the chance for growth and compounding.

    But did you know that you may utilise both of these methods to reduce risk in high-risk investments?


    Here’s how it works:

    If you have a substantial money to invest in a high-risk investment, consider putting it in a low-risk investment vehicle such as a debt fund. You can then gradually transfer tiny amounts of money from that fund to a high-risk investment vehicle.

    For example, if you wish to invest Rs. 10 lakhs in equities stocks or funds, you can put Rs. 1 lakh into equity stocks or funds in the first month and the remainder in a short-term debt fund.

    The remaining funds can then be transferred in small increments over the next few months.

    This way, you may manage market volatility while still earning high long-term profits.

  • What is the Risk-Reward Matrix?

    If you have seen the recent miniseries about one of India’s famous scammers, you would have come across this phrase: Risk hai to Ishq hai (Where there is a risk, there is love)

    Think about the times that you enjoy going on a long drive. When you started learning how to drive, it must have seemed risky and scary. But now that you are an experienced and good driver, you can enjoy the road to a great extent. All that risk you took seems to be worth it, right?
    The same is true for investment. Every investment has some level of risk. While you cannot prevent risk, you can reduce it by being financially savvy and recognising your risk tolerance.

    The same is true for investment. Every investment has some level of risk. While you cannot prevent risk, you can reduce it by being financially savvy and recognising your risk tolerance.

    So, if you want to achieve your goals, you must invest. But, if no investment is genuinely risk-free, how will you achieve your objectives? That’s a problem! But there is a workaround. You can increase your return potential by diversifying into the correct investments to help limit market volatility and keep your financial goals on track.

    Investment risk-reward matrix

    Every investor seeks an investment opportunity that will provide them with the highest possible profits as quickly as possible. But remember that it’s better to proceed slowly in the correct way than quickly in the wrong direction.

    And, as the saying goes, “all good things take time.” Similarly, investments take time to mature. In terms of investments, the risk-to-reward ratio is an important issue to consider.

    Consider you and your friend deciding to participate in the ‘dice throwing’ Instagram trend. In this game, your friend suggests that each of you contribute Rs. 500, for a total contribution of Rs. 1000. You will win the complete money if the dice is tossed and lands on an even number. Your friend stands to win if it is an odd number. The risk to reward ratio, in this case, is 1:1, as both of you have a 50% chance of winning the money you put in.

    It doesn’t sound like an attractive investment, does it? Assume you opted not to play.

    Your friend decides to up the stakes after hearing this. He modifies the game and recommends that if you contribute 500, he would place three times that amount, or 1500, for the same bargain.

    This sounds amazing, doesn’t it? You still have a half-chance of winning. If you win, he will receive Rs. 1500, which is three times your initial investment. As a result, the risk to reward ratio is 1:3.

    In technical terms, the risk to reward ratio is a valuable measure that helps gauge an investment’s profit (reward) relative to its potential loss (risk).

    We have already learned that each investment carries a certain level of risk. According to the industry, the greater the risk, the greater the reward.

    We’ll look at common assets and their risk-reward ratios to see what you may expect if you invest in them.

    Equity

    Shares and equities are the most volatile of all investments, making them the riskiest. However, it has the greatest potential for long-term profitability.

    Debt/bonds

    Debt securities are issued with the promise of interest payment. Because the risk is lower, the rewards achieved over time may not be as great as in the case of equities.

    Property investment

    The real estate market is volatile by nature. Key risks are determined by a variety of factors such as geography, demand, structural challenges, and a lack of liquidity. Based on all of these criteria, the risks associated with real estate investing are likely to be comparable to those associated with equities and bonds.

    Gold

    When it comes to gold investment risks, the expense of keeping and insuring the precious metal may be included. However, you can now invest in gold through Sovereign Gold Bonds (SGB), digital gold, gold ETFs, and gold mutual funds. Investing in gold provides diversification and a distinct blend of reward benefits. However, the risks associated with commodities such as gold are determined by market demand and supply.

    Varied assets will provide you with different growth rates. After reading about the various degrees of risk associated with each investment, you may be wondering, what if you just keep the money at home? Wouldn’t that imply no risk?

    Keeping cash at home, for example, may be dangerous. Alternatively, simply having money in a savings account exposes it to inflation. This means that the money will continue to lose value over time. And that’s an extra risk you’d be incurring. So, it is always better to invest.

  • What Are Microeconomics and Macroeconomics?

    Studying economics can help you understand the potential effects of economic policies on diverse industries. Economics is a tool that can help you predict macroeconomic conditions and understand the impact of those forecasts on businesses, equities, and financial markets.

    When you study the economy as a whole, it is called macroeconomics and when you inspect each aspect of the economy individually, it is called microeconomics.

    Let us now examine what they are.

    Microeconomics

    Microeconomics studies decisions made by individuals, firms, homes, workers, etc.

    Assume you and your family eat onion pakora every day. But you see that onion prices are increasing dramatically every day. So, you call for a family meeting and decide that you will eat onion pakoras only once in three days. While your family might not enjoy the decision, they agree since they contribute to the family finances equally.

    Microeconomics is the study of how specific changes in commodity prices can cause a person or corporation to change its behaviour.

    Macroeconomics

    Microeconomics, on the other hand, is concerned with parameters such as inflation, growth, inter-country trade, and unemployment.

    Microeconomics and macroeconomics are mutually beneficial.

    Microeconomics is a bottom-up method in which individuals and enterprises are examined first, then an industry, and finally the country.

    Macroeconomics is a top-down method in which the country is examined first, followed by the industry, and finally individuals or businesses. Macroeconomic considerations have a significant impact on stock market growth and success.

    What are the factors that macroeconomics looks at?
    It focuses more on elements such as GDP, unemployment rate, inflation, interest rate, government debt, economic cycles, and so on.

  • For The Most Beginner Investors, Here Are 5 Aspects You Should Be Mindful Of

    Investing is the most important way to build wealth and you don’t need to be an expert in the share market to be profitable. If you are unsure of how to choose the right stocks, you can always hand over the burden to the experts and simply invest in mutual funds. If you stay invested even for 20 years with an approximate return of 12% per annum, you can not only beat inflation but also create an immense amount of wealth. If you are just starting out on your first job, invest as much as you can spare and keep increasing the amount with every hike that you get. Here are 5 important aspects you should know before starting your investment journey.

    Risk and Return

    When it comes to investing, Risk and Return are closely linked. The larger the risk, the higher the possible return. You should never chase high-return investments on a whim. Consider your investing aim, time horizon, and risk tolerance. Always invest in something that is right for you.

    Diversification of risks

    Any investment entails some level of risk. You can’t prevent it, but you can limit the odds of big losses by managing your risk exposure with the correct strategy. Diversifying your investments and spreading your risk is the simplest and most effective method. Diversifying your investments across asset types, such as equities, bonds, and savings, is a good way to go.

    Consistency

    By committing to a consistent schedule for investing, say monthly, you can limit the risks of loss due to sharp moves on either side. Identify quality stocks and invest in them every month for good, long-term returns. ,b>Compound Interest Because the interest generated grows your principal (the money you put in), you obtain a bigger return. It’s a snowball effect: the longer you invest, the more compound interest benefits you. As a result, it is critical to begin saving and investing as soon as possible.

    Inflation> Inflation has been a constant in Hong Kong for the past few decades. Your investment must have a return rate that is equal to or greater than inflation. If you don’t, your money will lose value.

  • SEBI’s New 50% Margin Rule And What It Means For The Market


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    The Securities and Exchange Board of India (Sebi) announced in November that the framework for segregation and monitoring of collateral at the client level will be implemented on May 2, 2022. Following repeated appeals from parties to the market regulator, the deadline was extended to May 2nd.

    The rule was supposed to go into effect on December 1, 2021, but it was pushed back to February 28, 2022, and then to May 2nd, 2022.

    SEBI says that they are introducing this 50% margin rule for futures and options trading to limit risks in the system.

    This rule was proposed after a popular stockbroking company illegally used their clients’ shares as collateral against a loan.

    Market experts applauded the deadline extension, saying that more time would help all intermediaries prepare for the new margin rules. Since there will be a lot of changes in technology and operational processes, this extra time has assisted all intermediaries in properly gearing up.

    Even though the deadline is coming into effect today, several brokerage firms have implemented this 50% margin rule even before that for futures and options trader.

    The clauses outlined procedures for collateral deposit and allocation, collateral value, change of allocation, margin blocking, collateral withdrawal, and default management.

    In a recently released circular, the regulator highlighted investor interest, market regulation, and development as reasons for the postponement.

    Previously, investors could use their securities to completely cover their margins. However, from today, they will be required to hold 50% of the value in cash in their account as margins in order to trade in these categories.

    During times of strong market volatility, stress, and a bull run, this is primarily to protect investors from big swings, as well as the high risks and pitfalls of leverage.

    However, many people have raised concerns about the regulation’s negative aspects. According to them, this can lead to a reduction in market liquidity and possibly upend the market’s core price-discovery mechanism. Many brokers and traders believe that both results might have a big impact on market volumes.

  • What You Can Know About The Market With The Put-Call Ratio

    Market emotion can be gauged using a derivative indicator known as the Put-Call Ratio (PCR). Both a “call option” and a “put option” provide buyers the right to buy or sell a specific asset at a specific price, respectively.

    On any given day, the open interest in both a put contract and a call contract is combined to calculate the PCR.

    PCR = Put Open Interest/ Call Open Interest

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    Interpretation:

    A rising Put-Call Ratio, also known as a PCR, indicates that put contracts have a bigger open interest than call contracts. Traders are either negative on the market or using put options to protect their holdings from potential losses.

    There is greater open interest in call contracts than put contracts if the Put-Call Ratio or PCR falls below 0.5. This is a sign that investors are bullish on the market as a whole.

    A Put-Call Ratio of 1 shows that there are as many people interested in purchasing put options as there are in purchasing call options.

    Considerations that should be taken into account
    Investors can use the put-call ratio to get a sense of market sentiment before a market shifts. Aside from this consideration, it’s vital to examine demand for both numerator and denominator (puts and calls).

    The denominator of the ratio contains the number of call options. In other words, a decrease in the number of calls exchanged will raise the ratio’s value. Reduced call purchases without an increase in puts can raise the ratio. This is significant. To put it another way, the ratio doesn’t have to climb dramatically in order for it to do so.

    As more bullish traders remain on the sidelines, the market becomes more negative as a result. However, this does not necessarily mean that the market is bearish, but rather that the market’s bullish traders are waiting for a future event, such as the impending elections or RBI meetings.

    A Sign of Unpredictability:

    In India, the Put-Call Ratio is a common Contrarian Indicator. The market is due for a trend reversal if the readings are excessively high or low.

    Market players are overly pessimistic, and the market trend is likely to turn around soon. Similarly, exceptionally low levels signal that market participants are overconfident, and the market could turn red shortly if this trend continues.

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  • Face Value Vs Book Value Vs Market Value

    In finance, words like Face Value, Book Value, and Market Value are used very often to determine the value lowest brokerage e of a company. There is a lot of confusion about these terms, and some people think they’re all the same. Is it possible for them to be used interchangeably, and if not, what is the difference between their book values and face values?

    When it comes to stock selection, do these terms really make a difference?

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    Face Value

    Face Value During the earliest phases of the offering, the value of a company’s common stock is calculated and recorded on the balance sheet. Original cost might be referred to here. However, it is not an accurate representation of the market value.

    For example, the stock’s FV does not fluctuate and changes when a corporation goes through a stock split. In splitting the stock, the face value is taken into consideration rather than the market value. There are many different ways to split a stock, such as a 1:2 split, which will result in a change in the stock’s face value. As a result, the stock market’s value is likewise altered.

    Dividends are calculated per share or per percentage of the face value of the share. As an example, if the dividend is declared to be 80 percent and the stock has a face value of Rs 10, each share will receive Rs 8. As a result, investors should always focus on dividend amount rather than dividend % when evaluating a company.

    Face Value is based on the following two factors: Equity share capital and outstanding shares

    Equity share capital divided by the number of shares in issue equals the “face value.”
    As a result, the face value of each share is nothing more than the amount of equity stockholders have invested. It’s a theoretical number that doesn’t change.

    Book Value

    The term “book value” refers to the value of a company’s books (accounts) that is reflected in its financial statements or net worth. If all the firm’s assets are sold and all of its liabilities are repaid, this is what the company is worth. The Free equity of a company, to put it another way, is reflected in this metric. The fluctuation in Book Value is extremely rare and occurs just once a year as a result of the company’s overall performance.

    Using BV, you can see if the stock of a company is overvalued, undervalued, or just right. A company’s book value must be adjusted if it has a component of minority stake that is profit in the books due to a sister business under it.

    (i) Book Value = Total Assets – (Total Liabilities – Current Liabilities)

    (ii) Book Value per share = Face Value + Reserve per share

    Book Value and Face Value are linked in the second formula.

    There are few drawbacks to book value, such as the fact that it is disclosed on an annual basis. An investor won’t know the company’s book value has changed over time until after the reporting. There may be revisions to this accounting item that are difficult to understand and estimate. It is not effective for businesses that rely largely on human capital because only tangible assets are considered in the computation of book value.

    Market Value

    It is possible that the stock’s market value does not correspond to its fair value, which is determined by the stock’s current price on the exchange. It’s a measure of how much a business is worth. When the stock market fluctuates, so does MV. In the short term, it is influenced by the mood of the market, but in the long run, it is determined by the results of the company’s operations. It is the price at which we buy or sell the shares on the open market. Consequently, this is the most critical information for stock trading. This formula is used to determine a company’s market value.

    Market Value = Current Stock Price * Number of shares outstanding

    Market capitalization (MV) is another name for MV.

    Both tangible and non-tangible assets are taken into account when determining market value. Market value, on the other hand, is based on a shaky foundation. The market value of a firm can be affected by a variety of factors, including profitability, performance, liquidity, and even simple news. As a result, one might conclude that a company’s market value represents its current trend.

    Market vaue Vs Book Value
    If the stock is overvalued, undervalued, or just right, investors analyse the Book Value and Market Value.

    If the market value of a firm is lower than its book value, this implies that the market has doubts about the company’s future. Or, to put it another way, investors believe that the company isn’t worth what it’s worth on paper, or that future earnings will be insufficient. Value Investors, on the other hand, are on the lookout for such businesses because they believe the market is overvaluing them.

    If the market value of a firm is more than its book value, this shows that it is being valued more highly by the market. Therefore, investors expect that the company’s book value will rise in the future due to its good potential for growth, expansion, and increased earnings. Such businesses are considered attractive by investors. Stocks that are already trading at a high price may also be considered overvalued or overbought.

    As mentioned earlier If you are someone who trades or invests regularly then you understand the importance of using the right technology. We at Zebu, as one of the best share broker in the country, offer an online stock trading platform with lowest brokerage on intraday trading best suitable for full-time traders and investors.

  • How To Rollover Futures Contracts

    The term “rollover” refers to the process of transferring a near-expiring front-month contract to a futures contract in a further-out month. What this means is that you’ll close out your current contract and open a new one in the same time frame.

    The expiration date of any futures contract or option you purchase will be clearly marked on the contract (last day until which you can trade that contract). So, for example, you can only trade the Nifty 28th August future until August 28th.

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    If you want to hold your position till September, you will need to sell your August Nifty futures and buy a new September futures contract, which will be valid until September 29. Rolling over refers to the act of transferring from one month’s pay to the next. Before the market closes on August 28th, you can perform this rollover at any moment.

    So, for example, if you bought Nifty August futures at 17070 and imagine Nifty futures is 17000 on 20th August, you now opt to roll over your position to September since you want to continue your nifty futures purchase position. This means that the Nifty August future will be sold and you will instead purchase the Nifty March future, which you can now hold until March 29th.

    You must pay brokerage and costs when you sell the August futures and you must pay brokerage and charges again when you buy the September futures. As with a typical buy-and-sell, there are fees involved.

    This SEBI circular and comments from the exchanges state that rollover of contracts during the ban period is not permitted. In the event that you hold a contract job that is currently in a ban, you will only be able to exit that contract.