Futures Trading Platform at Share India

The futures trade is a contract base trade where the buyer and seller decide the number of shares to be sold to the buyer of the contract at a predetermined price and date. There is a particular date mentioned in the contract which cannot be changed and before or at that date this contract can be executed. So, the duration totally depends upon the contract expiration date. Each futures contract has a different expiry period.

You can sell or execute the futures contract as per your requirement. But depending upon your futures strategy, you can even sell futures on the same day. It is risky to sell the futures contract over a short period. Depending upon the contract, you can execute the futures trade on the same day.

One futures contract for one commodity. This means you need to sell one contract before buying another contract. The futures contract raises the concern of liquidity due to which buying and selling of futures contracts take time and if the trade goes in sideways there is also the chance of high leverage.

Yes, you can buy the futures contract without any leverage. For a futures contract, you need to add the margin amount to your account. Apart from these, you need to pay a premium amount which depends upon your contract value.

The lot size refers to the number of shares traded in the futures contract. When you trade in futures there will be a number of shares mentioned in the contract, this number comes in lots. Each futures contract contains different lot sizes or groups of shares to be traded between the two parties of the futures contract.

According to the SEBI rule, the trader needs to have at least 50% funds of their futures and options contract. The margin requirement for a futures contract completely depends upon the value of the underlying assets. You must maintain a minimum amount of funds in your account if you wish to trade futures. This minimum amount varies depending on the brokerage company.

The penalty which you can face in futures trading is for not maintaining sufficient margins in the margin account. This penalty is also known as the margin penalty. A stock exchange requires traders to maintain a minimum margin for the trade. If there, is a shortage in the transfer funds then the margin will shortfall resulting in a penalty.

The open contract is a futures contract that you bought that is still not squared off or has not yet expired.

Futures contracts need to settle before the expiration date to avoid penalties. Therefore, executing the futures contract before the expiration date is advisable.

The contract value refers to the current price of the futures contract multiplied by the lot size of the contract. Since the current price of the futures contract keeps changing, the value also fluctuates accordingly.

To trade in a futures contract, you need to have a trading account, and you need to place a request through your broker for the F&O trading. You need to find the ideal futures trade, place your bid, and pay a margin amount, which will be the percentage of the contract value. After the process match, you can exchange the trade and match the requirement with available buyers & sellers.

To trade in a futures contract involves margin payment. The volume of margin depends upon the stake size. For a general example, most brokers ask for at least 10 percent of the upfront margin before placing a trade.

Futures is a financial contract but obligatory. The buyer & seller of a futures contract obliges to make the trade of the underlying assets within the expiry date of the futures contract.