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I’m going to provide you an exhaustive, detailed content on F&O trading. With so many individuals, trading firms and organizations investing in F&O today, it’s become necessary to have an effective knowledge before you lock money in it.At present, the daily turnover in the Equity Cash segment of National Stock Exchange (NSE) is around $3 billion where as the daily turnover in the derivatives segment is around $30 Billion. In simple words, trading in equity in derivative market (F&O) is 10 times greater than trading in spot market (underlying stocks).So such a large amount of population trading in F&O, which made it something that you should consider doing, at least once.No doubt, futures can create a great wealth in short span with small amount of cash but on other side it’s riskier than any other securities. One party in future contract loses, other wins.However, in option trading (long position), you can limit your losses to some extent with no limitations on gains. SO options can be a great start if you’re a newbie in F&O.With no further ado, lets dive in.A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, depending on the underlying asset being traded, detail the quality and quantity of the commodity.An options contract is a contract that allows the holder to buy or sell an underlying security at a given price, known as the strike price. The two most common types of options contracts are put and call options, which give the holder-buyer the right to sell or buy respectively, the underlying at the strike if the price of the underlying crosses the strike.That’s how investopedia define it.But may be it’s going upon your head, huh?Okay, lets make it easy.F&O are known as derivative instrument.The terms “derivative” is used to denote financial instruments which derive their value from some underlying assets. In stock market, that underlying assets are stocks which are traded in spot market (stock exchanges).Generally, example of farmers are stated widely by many pundits when introducing F&O. In fact, it’s the real originator of derivative securities.The first future contracts can be traced to the Yodoya rice market in Osaka, Japan around 1650. The farmer afraid of falling price of rice in future before harvesting. So to protect them self from falling price, farmers entered into a contract with the buyers to sell the rice at predetermined price, irrespective of the market price. Here underlying asset is rice.So in this example of farmers, only physical settlement takes place i.e. farmer will exchange rice in for money but in stock market, cash settlement take place i.e. instead of transferring underlying stock, just the difference is paid in cash.Come on, don’t read it again and again, I’ll highlight it later after a example. Then it’ll be easy for you to understand.FUTURE CONTRACTSImagine yourself as a farmer.Img - wikimediaYou worked hard to grow paddy (rice) but you’re some how highly pessimistic regarding the future price of rice. And by luck, I (buyer) was optimist towards the future price of rice.(Lets assume currently the price of rice 10 Rupees per kg)SO we 2 made a contract, I’ll buy the rice from you for 9 per kg exactly after 3 months. Kaboom. Paper signed. Agreement executed legally.What made us to make this contract?As I was optimistic towards the price, I agreed at lower than current price. More will be the low price, more will be my profit. And as you was highly pessimist so agreed at bit lower price.So that’s what known as Future Contract of rice.How will we gain/loss?If the price of rice after 3 month is INR 10 per kg, then I’ll push the contract. In short, I earned 1 Rupee per kg rice.And if the price of rice after 3 months is 8 Inr then you’ll push the contract. In short, you’ll earn 1 rupee per kg rice.That’s how one earns and loses in future market.In case of rice, physical settlement take place. You’ll not give me 1 rupee if it’s in my favor instead you’ll sell rice for 9 whereas if it had to be settled in cash then you had only paid me 1 rupee. That’s why it is quite complex in equity derivative.This is where I was confused from a long time. Futures are not settled physically.Here’s the quick overview:Suppose you bought a future contract of ITC at 246 expired on July 28 (decimal ignored).Now suppose if the price of ITC on 28 July reached 250. But as you had a future contract of 246 so you can buy that stock at 246. Of course! on 28th of July, even if the current price is 250.That’s a benefit of 4 Rs per share. SO to make the process easy, cash settlement was introduced. Instead of buying buying stock at 246 (as per contract) and then selling it for 250 in current market, instead why don’t you take the difference directly in your pocket?That’s what know as cash settlement. If you transferred shares, then it would be physical settlement. By the way, exchange don’t allow physical settlement.And also you will incur loss if the share price gone below 246. Apply it vise versa.But wait! There’s another aspect also.When you buy securities, it means you’re going long. And in case of selling, shorting.So, instead of buying, you can also sell the future contracts. In fact their is always 2 parties (standing opposite to each other) whenever a contract is formed. That’s why one loses and one gains.Selling future contracts depicts that one will sell the stock at pre-determined price on any certain future date.Again the same example.Suppose I sold the futures of ITC at 246. It depicts that I would sell the stock at this price in future. So if the price is 240 on any predetermined date in future, I’ll lose 6 per share as I’ve to sell the stock for 246 (even if the current price is 246) as I was legally bound.Let’s sum it up:Bought future contract.Profit, if Spot price > Future priceLoss, if Spot price < Future priceSold future contract.Profit, if Spot price < Future priceLoss, if Spot price > Future priceAs the contract is settled on certain future date, so their’s no requirement of any cash at the time of contract. However, to safe guard the counter party, a margin, typically 10th of whole amount is deposited at the time of contract. Margin maintenance is also required on daily price fluctuations.In spot market, Cash and carry system is used. Pay and get the stock.Futures contract are available in lots. And that single lot contains thousands of shares (as prescribed by NSE).For instance, You can see the lot size of Cairn India at the bottom of the image.This means that investor has to make a contract of exact amount of shares in the lot. No less. For more, buy another lot of 3500 shares.This move was introduced by SEBI to discourage small investors practicing futures as they are riskier. However, even if it’s risky, there is a way to earn around 10% to 15% risk free return from futures. It’s simple and risk free but need great effort.Phew…..! enough of Futures, now lets talk about Options.OPTIONSFor a newbie, I would always recommend Options. It limits the losses on every trade to the extent of premium paid. And the good news is, your profit , in theory, is unlimited.SO here’s how option works.Unlike futures, their are 2 types of options.Call OptionPut OptionAnd again these 2 types are further categorized as:BuySellSo in total, we have four types of Options:Buy call optionSell call optionBuy put optionSell put optionBefore diving in deep, lets first understand the basics of Options.Options is a right, but not the obligation, to buy/sell specific asset for a pre-determined price on or before the certain future date.Here’s a example:Suppose you and your wife found a house (worth 50 lakhs) that you both loved to live in. And decided to buy it but due to lack of cash you’re not able to buy the house.Img - moneymagpieSO now what?Here’s the solution - You paid a premium, say 50,000, to the owner of house and signed a contract that he will not sell the house to anyone for one year. And you’ve right to buy it on and before the last date of one year.Simple, huh! Okay, now lets make it complex.Suppose media discovered that the house, you’re going purchase, was the place where Narendra Modi spent his childhood. Just after the news, the price of the house went up by double i.e. 100 lakhs.The question is - Weather the real owner of the house is entitle to sell the house to anybody for 100 lakhs or not?Of course, not. You 2 made a contract that he’ll will not sell the house to anyone till the year ends. So what will you do to get profit.Would you care to still buy the house for 50 lakhs?Of course, you can buy a house at half rate (as per the contract) and sell it at double. In this case, flat 50 lakhs profit. However, you’ll lose 50,000 amount of premium.But if the neighborhood discovered that the house was haunted by the ghost of Sir Edward VI, the basement full of rats and wall cramped from inside……. which drove the price of house to 25 lakhs.Now, what?Are you still bound to buy that house at 50 lakhs.Of course, not. Unlike futures, you’re safe from additional loss. Your loss is limited to the extent of premium you paid. Just don’t execute the contract for 1 year, it’ll get expired. No loss (except the premium amount) and you’re also not entitle to buy it.That’s why it was your right (on your own discrete) to buy or sell. It’s all on you, weather you execute it or not.You’re buying a call option and he is selling the call option.Buyer has limited loss and unlimited profit. Seller has limited profit and unlimited loss.But the scenario is vise versa in put option. Buyer of put option has the right to sell (not ‘buy’ like call option) the securities at pre-determined price on or before future date. Buyer pays the premium.Buyer of put option have limited loss and seller has limited profit.An illustration of option of Cairn India:Options are also categorized as European and American. In India, only European options are exercised.American Options are can be exercised on or before the expiry date.European Option are only exercised on expiry date.Lets sum it up.Buy call optionProfit, if spot price > (future price + premium)Loss, if spot price < (.…..’’……)Sell call optionProfit, if spot price < (…...’’……)Loss, if spot price > (……’’…….)Buy put optionProfit, if spot price < (……”……)Loss, if spot price > (……’’……)Sell put optionProfit, if spot price > (…..’’……)Loss, if spot price < (……’’……)May be that’s enough. Have queries? Shoot a comment.Intrigued by the answer? Get more exclusive content on investing.

Before arbitrarily deciding the answer in Sachin’s favour or Cook’s, we have to take a look at what the statistics show although it will not be the concluding factor as there are other significant forces at work which the stats do not display. Alastair Cook’s style of play and talent is much better than how he looks, and his looks rival those of Tom Cruise and Brad Pitt. At the time of writing, Cook has amassed 11629 runs from 147 test matches and specifically, from 266 innings at an average of 46.33. His average is highly low when compared to Tendulkar’s average which is almost touching 54. In 25 calendar years, Sachin raked up 15921 runs and played 329 innings in 200 test matches with an average of 8 test matches in a calendar year. Cook has played 147 test matches in 12 calendar years with an average of more than 12 test matches in a calendar year. He is also travelling to Australia to add on 4 test matches to his tally before this year ends. What has worked in Cook’s favour (and not in Sachin’s) thus far is that England play more test matches than any team in any year and the fact that Cook has never been out of the team for a long time for being unfit or being out of form. But unlike Cook, Sachin had the advantage of debuting at an age of 16 and a half years and retired after 40 years of age.Have a look at how has played Alastair Cook over the years.http://www.howstat.com/cricket/Statistics/Players/PlayerYears.asp?PlayerID=3349It is easily decrypted that he has not been in great form in the last five years except 2015. Furthermore, he has played more than 10 tests on 9 different years which helped him enhance his run tally.This list consists of those elegant Batsmen who have scored more than 10000 runs in their career.As you can observe, the reason why he broke Dravid’s record of the lowest time to reach 10000 runs, and became the youngest batsman to reach 10000 runs is mostly because he played a lot of tests in fewer years. He took 34 innings more than Sachin to reach the same milestone.http://stats.espncricinfo.com/ci/content/records/283191.htmlSame deductions as above can be deduced from this list showing those batsmen who succeeded in scoring 11000+ runs.According to current trends, if Cook seeks to break Sachin’s record, he has to play at least 30 innings more than Tendulkar played in his lifetime. For doing that he has to play atleast 50 test matches (maybe even 55) more, which require him to be fit till the end of year 2021, by which he will be 37 years old.England is scheduled to play 13 tests in 2018 and the teams are Aus, NZ, Pak, India ( with us they are going to play 5 tests) and Sri Lanka. Then in the following year, England is going to tour WI for 3 tests and then host Australia for the Ashes.Also in 2019, Lord's will host a game between England and the winners of the ICC Test Challenge, which is a play-off which will take place every four years from 2018 between the lowest-ranked Test team and the winners of the ICC Intercontinental Cup.http://www.bbc.com/sport/cricket/30519129In Conclusion, Cook is nearing 33 and his recent form is nothing to be proud of except a double century (263 runs) that he hit recently. The last time he went down under in 2013-14, he performed miserably and scored just 246 runs in 10 innings but the Ashes in Australia before that one i.e. 2010-11, he made 766 runs at an average of 127.67. Unlike the BCCI, the England and Wales Cricket Board are not known for giving long ropes to underperforming batsmen but herein lies Cook’s advantage, which is that there are not many performing openers on the English bench at present. Sachin Tendulkar’s form dipped heavily during the last three years of his career but no one could drop him from the team, could they? Also, Cook has to concentrate only on his game play in test matches and not on ODIs or T20s which he, in all probability, will not be playing. The same gives him an added advantage for staying fit as he plays less.Many English batsmen like Andrew Strauss, Matt Prior, Jonathan Trott, Andrew Flintoff retired a little early. Also, Cook is at an age when most of the batsmen undergo serious dips in their batting and their batting averages. Is Cook ready to be an exception and endure fifty or fifty five more grueling tests, while maintaining his fitness and form? Will he be able to bounce back like Tendulkar if he is threatened with a career ending injury? For those who are keenly interested in whether Cook overtakes Tendulkar, they will have to observe Cook’s performance in the upcoming Ashes which will, undoubtedly be a very important and defining tour. The answer whether he will be able to become the highest run getter will become clear at the end of the year itself after the boxing day test which is the 4th test match scheduled between England and the Aussies. It will become clearer still during India’s tour to England in 2018 for the five test matches. Regardless of whatever happens, Tendulkar will remain the greater batsman. :-)Have a nice day and thanks for reading.

You cannot change the wording of the Second Amendment without a constitutional amendment.A constitutional amendment to be ratified must have approval of 3/4 of all state legislatures, both possible amendment methods require this.The way all amendments done to date have worked is that first you need 2/3 of both houses of congress to approve it, then it is passed to state legislatures and must be ratified by 3/4 of the legislatures of all states in existence. Thus with 50 states, you must have 38 ratify, so 13 states could stop/prevent ratification.How is the Constitution amended?Aside from that it seems you misunderstand the term “well-regulated”. The English language has changed a bit since the 1790s.Meaning of the phraseFrom: Brian T. HalonenThe following are taken from the Oxford English Dictionary, and bracket in time the writing of the 2nd amendment:1709: "If a liberal Education has formed in us well-regulated Appetites and worthy Inclinations."1714: "The practice of all well-regulated courts of justice in the world."1812: "The equation of time ... is the adjustment of the difference of time as shown by a well-regulated clock and a true sun dial."1848: "A remissness for which I am sure every well-regulated person will blame the Mayor."1862: "It appeared to her well-regulated mind, like a clandestine proceeding."1894: "The newspaper, a never wanting adjunct to every well-regulated American embryo city."The phrase "well-regulated" was in common use long before 1789, and remained so for a century thereafter. It referred to the property of something being in proper working order. Something that was well-regulated was calibrated correctly, functioning as expected. Establishing government oversight of the people's arms was not only not the intent in using the phrase in the 2nd amendment, it was precisely to render the government powerless to do so that the founders wrote it.Being “well regulated” means “in proper working order” for a militia that means well trained, well equipped, and knowing how to fight, it does not mean being under the thumb of the federal government.Second, the definition of the word “militia” is often abused by gun control advocates. The definition of the word militia is clearly and specifically stated in federal law.10 U.S. Code § 246 - Militia: composition and classes(a) The militia of the United States consists of all able-bodied males at least 17 years of age and, except as provided in section 313 of title 32, under 45 years of age who are, or who have made a declaration of intention to become, citizens of the United States and of female citizens of the United States who are members of the National Guard.(b) The classes of the militia are—(1) the organized militia, which consists of the National Guard and the Naval Militia; and(2) the unorganized militia, which consists of the members of the militia who are not members of the National Guard or the Naval Militia.The militia is defined as above, not JUST the national guard.