Plzzzz tell me

thanxx ketan n ashi agarwal ur examples wer too gud.. Thank u once again

agree with ketan and ashi

Its is purely the business of futures and options carried out in stock markets...!!! Get some details on that and u will come to know about it..!!!

Originally posted by : ketan joshi
	It means sell or purchase settled at pricing difference without physical actual delivery.. suppose you purchase a 3 month forward contract of dollar today at price of 58 and after 3 month the actual price means spot rate is 55 then you settle the transaction by recognizing loss of 3 ...without actual delivery of dollars..

i think forward contracts can not be settled by otherwise than delivery

( do you want to say future contract)

please correct me if i m wronge

ya i think frwrd means future contracts...

Yes chaitanya you are right ..Its future contacts where speculator do their business...

Because Forward contracts are the private aggrement and parties are known to each other and settlement done at fix future date no clearing house ....

and In future contact..it is exchange traded and parties are unknon to each other and settlement are done thru clearing corporation...and furure contract are mark to market dailly....

Hey Jainith Kumar sorry for ealier post its was bit mistake due to hurriness...but correct my answer with this and thanx to Chaitanya for pointing my mistake and correct me if any mistake in this...

Thanx

Another example is INTRADAY TRADING in stock market.

For Example,

Mr X purchased 100 shares of stock A @ 500 on Intraday Basis(delivery not taken) on a particular date.On the same date he sold those shares @ 520.

This is a case of speculation business as actual delivery has not taken place.The above profit of Rs 2000(100*20) will be treated as "Profit from Speculation Business".

Hope I m correct.