Futures Basics
Understand futures contracts, margin, lot size, expiry and pricing on NSE. Everything you need before trading futures in India.
21 articles- What is a Futures Contract in India? A futures contract in India is a standardised agreement to buy or sell an asset at a fixed price on a future date, traded on NSE… 5 min read
- What is a Short Position in Futures? A short position in futures means you are selling a futures contract with the expectation that its price will fall before the… 5 min read
- How to Place Your First Futures Trade in India? To place your first futures trade in India, you need to first understand what a futures contract is, open a Demat and trading… 5 min read
- Nifty Spot vs Nifty Futures — What's the Difference? Nifty Spot is a calculated index value of 50 stocks that you cannot trade directly. Nifty Futures is a tradeable derivative… 5 min read
- Can a Beginner Lose All Their Money in Futures? How to Prevent It Yes, a beginner can easily lose all their money in futures trading, and even more than their initial investment. This happens… 5 min read
- What is the Maximum Profit Possible in One Nifty Futures Trade? Theoretically, the maximum profit possible when you buy one Nifty futures trade is unlimited because the index can rise… 5 min read
- What is a Margin Call in Futures Trading? A margin call in futures trading is a demand from your broker for more money. This happens when the value of your futures account… 5 min read
- What is Cash Settlement in Index Futures? Cash settlement in index futures closes the contract by paying the cash difference between the trade price and the final… 6 min read
- Futures Margin vs Options Premium — Which Requires More Capital? Futures contracts require a large upfront deposit called a margin, which is a percentage of the total contract value. Options… 5 min read
- 5 Things to Do Immediately When You Receive a Margin Call When you receive a margin call on a futures contract, you must act immediately to avoid forced liquidation by your broker. Your… 5 min read
- How to Calculate the Roll Cost of Nifty Futures? To calculate the roll cost of Nifty futures, find the price difference (spread) between the next month's and current month's… 5 min read
- How to Plan Your Trades Around Futures Expiry Week? Planning your trades around futures expiry week involves understanding market dynamics like increased volatility and open… 5 min read
- Monthly vs Weekly Futures Expiry — Which Is Better for Traders? Weekly futures offer more trading opportunities with lower capital but come with higher risk and transaction costs. Monthly… 5 min read
- Best Way to Monitor Futures Position Limits to Avoid F&O Ban A futures contract in India is an agreement to buy or sell an asset at a predetermined future date and price. The best way to… 5 min read
- I Forgot to Rollover My Futures Position Before Expiry — What Now? If you forgot to roll over your futures position before expiry, the outcome depends on whether it was an index or stock future… 5 min read
- What is Futures Trading Strategy? A futures contract is a standardized legal agreement to buy or sell a particular commodity or financial instrument at a… 5 min read
- What is a Calendar Spread in Futures? A calendar spread in futures is a trading strategy where you simultaneously buy and sell two futures contracts for the same… 5 min read
- What is Position Trading in Futures? Position trading in futures is a long-term strategy where traders hold contracts for weeks, months, or even longer. They aim to… 5 min read
- What Are the Common Mistakes in Futures Trading? The most common mistakes in futures trading are using too much leverage and not having a clear plan. Understanding what a futures… 5 min read
- What Are All the Charges in a Futures Trade in India? A futures trade in India carries six to eight charges beyond brokerage, including STT, exchange fees, SEBI fee, GST, stamp duty… 5 min read
- How to File ITR for Futures and Options Income in India? You must file ITR-3 if you have income from futures and options (F&O) trading in India, as it is treated as business income… 5 min read