Why are single-stock futures so much preferred by the speculators?
People who were earlier badla traders are the ones who indulge in this. In single-stock futures trading you do not have to pay for the full value of the shares you buy; you only have to pay a small margin. In contrast, if you buy in the cash market, as most household investors do, you have to make the payment in full. The fact that you can buy shares by investing only a fraction of the price of the share makes it possible for speculators to manipulate the single-stock futures market. In futures trading the margins are very low as it allows for large-scale speculation. In fact, prices can also be manipulated if there are cartels in the market. The FIIs can do this very well. In my opinion, FIIs should not be allowed to trade in single-stock futures. The dominance of single-stock futures is the most important architectural weakness. It arises from certain other features of the futures system. When single-stock futures trading was introduced, it was originally envisaged that there would b
