Future Market :-
Future Market is a place where everybody can trade, like if someone having so little amount of money, and he wants to trade in the stock market, then he should stick on the future market. In future market, people can trade with a very small amount. They have to pay just margin money of share value, which is at most 15 to 20 % of value of total shares. In Future Market, a small investor can also trade easily and effectively.
Futures Contract :Future is a contract between two parties for buying or selling a particular underlying assets on a particular date at a fixed price. The Underlying asset can be commodities, shares, currency, equity, index, foreign exchange, forex or any other assets.
In simple language one future contract is group of stocks (one lot) which has to be bought with certain expiry period and has to be sold (squared off) within that expiry period. At a time, Future Contract is available for 3 months. Future contract get expires at every last Thursday of every month.
In this segment trader can do two types of trading.
Intra-day Trading - In the Intra-day trading, traders have to square off the position in the same trading day. Intra-day trading means, not holding any position overnight. In this type of trading, at the end of the day traders get profit or loss in their accounts. In Intraday Trading, no need of margin money, for this trading trader only have to pay Mark to Market amount.
Positional Trading- Positional Trading is similar to Delivery trading in Cash Market. Positional trading, where you take up a position upto that expiry date.
