Future Market

FUTURE MARKET

future market

Hi...investors today we gonna discuss about the impotant topic of stock market that is future market. in these article I am give you important knowlede & info about future market. 

In these article we are discuss about more information of FUTURE MARKET. how future market work, pros/cons & examples of future market, rules & regulation for future market. many other related information about future market.

MEANING OF FUTURE MARKET?

In simple way afuture market is auction market in which participants buy & sell particular stock or commodity & futures contracts for delivery on a specified future date. futures sre exchange traded derivatives contracts that lock in future delivery of commodity or security at a prise set today.

FUTURE EXCHANGE

future exchange is a market place where a diverse range of stock or commodity

futures index and future options and commodities are bought and sold. it is a market place individual who want to trade futures contract must do so by establishing account with register broker

MEANING OF FUTURES 

Futures are derived financial contracts that obgilate  the parties to transact an asset at a predetermined future date & prise. here buyer must purchase and seller must sell the underlying asset at the set prise regardless of the current market prise at the expiry date.

FUTURE MARKET BASICS

In order to understand fully what a futures market is, it’s important to understand the basics of futures contracts, the assets traded in these markets.

Futures contracts are made in an attempt by producers and suppliers of commodities to avoid market volatility. These producers and suppliers negotiate contracts with an investor who agrees to take on both the risk and reward of a volatile market.

Futures markets or futures exchanges are where these financial products are bought and sold for delivery at some agreed-upon date in the future with a price fixed at the time of the deal. Futures markets are for more than simply agricultural contracts, and now involve the buying, selling and hedging of financial products and future values of interest rates.

Futures contracts can be made or "created" as long as open interest is increased, unlike other securities that are issued. The size of futures markets (which usually increase when the stock market outlook is uncertain) is larger than that of commodity markets, and are a key part of the financial system.

TRADE IN FUTURE MARKET

UNDERSTAND HOW FUTURES WORK

Mainly future market are complex financial instrument any other market instrument like stocks or commodity. there is huge volatility in market due to volatility their profit & loss also high. so trade in these market risky compare to any other market segment.

FIX THE REWARD RATIO  

Trade in future market is risky due to its volatility our first step is calculating the risk and profit. our risk reward ratio must be minimum 1;2 it means suppose our risk is 100rs then our reward must be 200 rs then it is a good trade.

DETERMINE YOUR APPROACH TO TRADING 

It is important to follow one core strategy to success in the future trading not follow many strategies to trade it may became losses so your approach trading must be success. 

SETTLEMENT OF FUTURE CONTRACT

It means you need to settle the future contract, this can be done on expiry or before of the date expiry. a settlement is nothing but delivery obligations associated with futures contract.