What are Futures?
Futures in 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.
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
Types of futures contract
There are 5 types of 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 on NSE. We will have below charts and filters for all FNO stocks in Dashboard
- Price Gainer
- Price Losers
- Open Interest Gainers
- Open Interest Losers
- Long Buildup Stocks
- Short Buildup Stocks
- Long unwinding Stocks
- Short Covering Stocks