Difference between Cash /F&O/Currency Derivatives

xyx2000

Regulars
[OP]
Regulars
Oct 21, 2005
2,665
314
I need help in filling up a share trading a/c form, I already have demat a/c with HDFC Bank & now opening a trading a/c with a share broker , they have sent me the a/c opening form & have marked spots on the form where i have to sign , problem is they have marked everything , i told them i dont want a demat a/c they have still marked the demat section for me to sign ,In the form there are Cash/F&O/Currency derivatives options for BSE & NSE which i have to choose , should i choose cash only? I will use this a/c for long term investment only , wont trade much .
 

rajadeep

Regular
Regulars
Nov 9, 2007
854
59
Mumbai
I would recommend that you ask the broker to have one of their representatives explain each section of the form you need to sign... This will serve 2 purposes... 1st it will make sure you dont signup for any service that you do not want... 2nd it will show you weather the brokerage firm really values you as a customer... Times are tough right now & new customers hard to come by...If the brokerage firm cant spare the time to even explain a simple form they are making you sign than what will happen if you have a real big problem & you need their help & cooperation... If they dont explain the form to you in detail according to your needs just walk away... There are plenty of other fish in the sea who will jump the hoops for you...Also from what I understand Cash means normal shares , F&O means future and options & Currency derivatives means forex... This is just a calculated guess & I feel a little context is needed to give a accurate answer... Anyway it is the job of ur broker to guide you as to which options you should select...
 

xyx2000

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[OP]
Regulars
Oct 21, 2005
2,665
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^ I was going to call them, just trying to get as much info as i can before i call
 


rajadeep

Regular
Regulars
Nov 9, 2007
854
59
Mumbai
^ I was going to call them, just trying to get some as much info as i can before i call

I know that was ur intention but I just wanted to remind you of your rights as a customer :)... You are placing your hard earned money into their hands & they need to earn the right to handle your money... That means catering to your every need... Like for example for the past 4 odd years since I opend a HDFC acct,I have not filled up a single bank related form... I expect them to fillup the form for me & bringing it to me to sign... Some might call it being lazy but I believe if I am gonna keep large amt of FDs in their bank they might as well earn it :p...
 

xyx2000

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[OP]
Regulars
Oct 21, 2005
2,665
314
Its always good to have some knowledge , I dont really trust these people to fill up the form or even tell me what to fill, the form is a 60 page book , there is lots of stuff in there that i dont need & the brokers will just try to make their job easy by telling me to fill as much as they can.
 

Toocool

Addicts
Apr 2, 2007
5,125
66
just opt for cash(equity) segment for long term investing...