Benefits of Future Market

  • Margin : - The most important benefit of Future Market is trading can be possible with the belittled amount of money. There is no need of a huge amount for investment. In future Market, easily trading can be taken place with a small amount. In Cash Market, if you want to purchase 100 shares, so you have to pay an amount of 100 shares (100 shares * Cost of per share) but in a future market, you haven't needed of pay a whole amount of money of 100 shares, you only have to pay margin money of the total share amount. The margin (price of one lot size) varies daily based on its stock closing price.
  • Shot Selling : - Shot Selling is also possible in Future Market. In the cash market, you can't do shot selling in Delivery, but in Future market, shot selling is available for both Intraday and positional calls. Shot selling means you can sell shares, even you haven't shares.
  • No need for holding the underlying commodity or equity :- Trading futures does not require the trader to have or own actual physical goods on hand in order to trade them, because all the trader is really doing is speculating with future contracts.         
  • Works in the Lot sizes- In future market, shares are available in lots. Lot sizes of all futures are different- different, it's decided by SEBI.