How to Trade in Indian Stock Futures?
Indian Stock Market is a place where you can trade and make money, but which market is good for you that depends on your capability and your interest. In stock market you can trade in cash market, commodity, stock futures and Options market, Nifty futures. All markets are totally depend on exchanges guidelines and terms and conditions, SEBI decide all rules and regulation for exchanges.
Futures Trading is a form of investment which involves speculating on the price of security going up or down in the future. When you trade in futures, you do not actually buy anything or own anything. The future date is called the delivery date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price that is last Thursday of the month sgx nifty share price. Stock Futures is a contract between buyer and seller which is based on pre-agreed futures point where both parties can buy or sell assets.
Currently in India Stock Future are cash settled, like other market trading also here SEBI exists to guard against traders controlling the market in an illegal or unethical manner, and to prevent fraud in the futures market. The trader puts up a small fraction of the value of the underlying contract that is usually 10 to 25 percent and sometimes less as margin, yet he can make profit as markets up or down.
Future offers high leverage so that you can earn more money against less capital, The investor can first buy and then sell stock futures to square up or can first sell and then buy stock futures to square up his position. In the futures markets, unlike the cash markets you can sell shares without actually owning them in your demat account. Stock Future market gives you permission to trade only in lot size, Lot size is pre decided size that is decided by stock exchange, you cannot trade with a single share. Stock Futures are both in NSE and BSE.