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as a trader equity market is safe.we can start it from low money.investors will get shares when it purchase.
while we can create more quantity with less money.but risk involve is high.high risk high profit and high losses.you will not get asset in hand in derivative market.Pros of Equity market – Reduced risk in terms of profit/loss. Shares are in the buyers account and similarly payment in the sellers account by end of day
Cons of Equity market – Short position can be created only at the traders risk. Full price of trade has to be paid and all shares delivered by end of day
Pros: Deals are settled in the same day. Hence counter party risk is reduced to some extent.
Cons: It requires considerable investment as compare to future/Options.
In equity market one can quickly achieve profit by selecting right stocks at the right time. it yields huge returns.
on the other side if his analysis fails and if market reacts reverse then certain amount of loss would happen.
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