Futures Dashboard

What is Futures Dashboard?

Futures in the stock market are agreements made between two investors in which they agree to buy or sell a particular asset at a fixed price and time. This helps in reducing the risk and losses involved. Futures trading will protect you irrespective of the market fluctuations.

You can perform investing Futures by using lesser margins and predicting future demand or price and reducing the losses.

Futures Dashboard represents all the expiry wise Futures stocks. On the dashboard, you can select the date to view the expiry wise stocks. You can also select all on the dashboard to see the combined open interest NSE for all expiry. As of now, we are listing only stock Futures and index Futures data only.

What is A Futures Contract?

In a Futures contract, The buyer of a Futures contract is taking on the obligation to buy and receive the underlying asset when the Futures contract expires. The seller of the Futures contract is taking on the obligation to provide and deliver the underlying asset at the expiration date.

The Futures pricing formula is -

Futures Price = Spot price *(1+ rf )– d

Where,

rf = Risk-free rate

d = Dividend

Note, ‘rf’ is the risk-free rate that you can earn for the entire year (365 days); In consideration of cases where the expiry is at 1, 2, and 3 months you may want to scale it proportionately for time periods other than the exact entire year (365 days). Therefore a more generic formula would be –

Futures Price = Spot price * [1+ rf*(x/365)]– d

Where,

x = number of days to expiry.

Types Of Futures Contract

There are 5 types of the Futures contract, they are :-

• Stock Futures
• Index Futures
• Commodities Futures
• Currency Futures
• Interest Rate Futures

How to trade Futures?

For Futures Trading, you need to track all the stocks expiry wise Futures Positions.

In the Futures dashboard, we have listed a summary of all the stocks which are in the Futures and Options segment of NSE. We will have below charts and filters for all FNO stocks in the Dashboard

• Price Gainer
• Price Losers
• Open Interest Gainers
• Open Interest Losers
• Long Build Up Stocks
• Short Build Up Stocks
• Long Unwinding Stocks
• Short Covering Stocks

Using this Futures dashboard, you can check positions that traders are creating in Intraday. This can help with how to select stocks for Intraday and to find which stocks to buy and sell. This can also help to select Short term trades based on how positions have been build in last few days.

With help of Open Interest data , we can see positions that traders are making in Futures and Options stocks.The positions are usually classified as Long Buildup , Short Buildup , Long Unwinding , Short Covering.

• LONG Build Up :- It means people are taking positions assuming price will go up. This is marked by increase in Open Interest and increase in price of Futures. Usually we also take care of Long Build Up of last few days before taking trades . If in last 2-3 sessions, traders have bought Futures and increased Open Interest, most likely that uptrend will continue.
• Short Build Up :- It means people are taking short positions , assuming price will go down. This is usually characterized by increase in Open Interest and fall in price. Basically it means that traders are increasing their positions by selling Futures as well because they expect the prices to go further down . Generally is good Short Build Up is happening in stocks, its followed up by further selling.
• Long unwinding :- This shows Long positions are now getting exhausted and people are starting to book profits , assuming rally is about to over. Long Unwinding is marked by decrease in Open Interest of Futures and decrease in price as well. Usually Long Unwinding happens after an swing upmove where stocks move up for sometime followed by traders booking their positions.
• Short Covering :- Short Covering happens after stock has fallen a lot and now traders who have build short positions want to book profits . When Short Covering happens, traders will decrease Short positions. Short Covering may also happen when some good news comes in stocks after prolonged falling and short sellers need to exit , as they are expecting reversal. Usually this is represented by Increase in price and fall in open interest.

Combined with volumes , this can serve as important indicator in selecting stocks for Intraday or Short Term