Futures Trading (13)
Start small with liquid contracts and proper risk management. Options Trading System explains futures basics.
Breakeven = Entry Price ± Costs (brokerage, taxes, charges). Profit/loss starts after covering costs.
Future Value = Present Value × (1 + Rate)^Time. Useful for SIP/FD growth calculation.
Lot size = Standardized quantity set by exchange. Profit/loss = Price difference × Lot Size.
Profit = (Sell Price – Buy Price) × Lot Size. Futures amplify gains/losses.
Use opposite futures positions or protective options. Hedging reduces exposure to adverse moves.
Commodities futures are contracts to buy or sell raw materials like oil or wheat at a future date at a predetermined price.
Futures trading is the buying or selling of standardized contracts that obligate the parties to transact an asset at a future date and price.
Index futures are futures contracts where the underlying asset is a stock market index like Nifty or Sensex.
Futures = standardized, exchange-traded; Forwards = customized, OTC.
Spot = current index; Futures = contract with future expiry. Bank Nifty more volatile.
Spot = current index; Futures = contract with future expiry. Pricing differs due to cost of carry.
Watch volume, open interest, and price action. TradePilot provides live monitoring tools.