Futures Trading
Futures Trading is a segment of the derivatives market. This module covers the various intricacies involved in undergoing a futures trade, including margins, leverages, pricing, etc. It also discusses the use of derivatives for hedging purposes.
13 chapters
Introduction to Derivatives
What are derivatives? Understanding forwards, futures, options, and swaps.
Futures Contract Basics
Understanding futures contracts. Lot size, expiry, and contract specifications.
Leverage and Margin
How leverage works in futures. Initial margin, maintenance margin, and margin calls.
Margin Calculator
Using SPAN margin calculator. Understanding exposure margin and total margin requirements.
Futures Pricing
Cost of carry model. Understanding premium, discount, and fair value of futures.
Trading Futures
Placing futures orders. Rollover, square off, and physical settlement.
Open Interest
Understanding open interest. Using OI for market analysis and trading signals.
Hedging with Futures
Using futures to hedge portfolio risk. Long hedge, short hedge, and cross hedging.
Index Futures
Trading Nifty and Bank Nifty futures. Index arbitrage and index hedging strategies.
Stock Futures
Single stock futures trading. Stock selection and risk management.
Futures Trading Strategies
Spread trading, calendar spreads, and pairs trading with futures.
Risk Management in Futures
Position sizing, stop losses, and managing leverage risk in futures trading.
Getting Started with Futures
Practical steps to begin futures trading. Capital requirements and broker selection.