Module 4

Futures Trading


  • 32.

    1. Background – Forwards Market

    An introductory article on Futures. Describes what a forward contract means along with a practical illustration of the concept. The article discusses the procedure for settling the forward contract. T ..

  • 42.

    2. Introducing Futures Contract

    The article starts by discussing the drawbacks of Forwards contracts and progress to discuss how a futures contract overcomes these drawbacks. Examples are quoted to make the concept clear. ..

  • 299.

    3. The Futures Trade

    The article explains how a trader can employ futures contract to financially profit from his directional view on a stock or an index. Practical examples are used to illustrate how the trade would evol ..

  • 151.

    4. Leverage & Payoff

    This chapter discusses leverage, the central theme of futures trading in detail. The contract between futures and spot market is discussed. The chapter also touches upon leverage calculation. ..

  • 192.

    5. Margin & M2M

    This chapter gives you all the necessary information that you need to know before placing your first futures trade. The chapter also throws light into why brokers and exchanges charge margins. ..

  • 102.

    6. Margin Calculator (Part 1)

    This chapter gives you an overview of how to use a margin calculator. In addition the chapter also touches upon spread trading such as calendar spreads. ..

  • 127.

    7. Margin Calculator (Part 2)

    In continuation from the previous chapter this chapter discusses various product types such as NRML, MIS, Bracket Order, and Cover order and the margins applicable to these products. The chapter also ..

  • 279.

    8. All about Shorting

    The chapter explains all that you need about shorting, be it futures or stocks with practical real life examples. Emphasis is also made on things you need to take care of when you short stocks or futu ..

  • 214.

    9. The Nifty Futures

    This chapter is a primer on trading Nifty Futures. All that you need to know about Nifty futures is discussed in this chapter including the impact cost, liquidity, and benefits of trading Nifty future ..

  • 297.

    10. The Futures Pricing

    This chapter is a primer on how future contracts are priced with respect to the spot prices. The chapter also discusses the concept of premium, discount, and the convergence of futures and spot price ..

  • 147.

    11. Hedging with Futures

    This chapter gives a step by step instruction on how to hedge a portfolio of stocks with the help of a futures instrument. The chapter also has a detailed description on beta and method to calculate t ..

  • 324.

    12. Open Interest

    This chapter explores in details the concept of open interest and its relevance to futures trading. The chapter also includes a guide on how to interpret the change in open interest with respect to ch ..

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