Hi friends first you will learn about what is future trading and then how to do future trading. So, now ,,,
What is Future Trading?
Future trading is a two-party future trade in which there is always a fear of both parties not fulfilling their contracts, for which it is regulated by SEBI. So that neither party leaves the contract in the beech.
Benefits of Future Trading
Leverage: – In future trading, you get leverage, leverage means you get more goods in less money. Suppose you have to buy 250 shares of Reliance, whose value of one lion is ₹ 2500. So, you will need ₹ 625000 but instead you buy Reliance’s future, then it will only cost you around 133000.
Hedging: With the help of hedging, you can perform hedge or reduce the loss in your future or you can make your position stable.
How to Do Future Trading
Starting futures trading is relatively easy. Open an account with a broker that supports the markets you want to trade. A future broker will ask about your investment, income and net worth experience. These questions are designed by the broker to allow you to take risks in terms of margins and positions. There is no industry standard for commission and fee frameworks in future trading. Every broker offers different services. Some offer a good deal of research and advice, while others give you only a quote and a chart.
Some sites will allow you to open a paper trading account. You can practice trading with “paper money” before paying real money for your first trade. This is an invaluable way to check your understanding of the futures market and how markets, leverage, and commissions interact with your portfolio. If you’re just getting started, we highly recommend that you spend some time in the virtual account until you’re sure you’ve gotten the hang of it.
Yes, even experienced investors will often use a paper trading account to test a new strategy. Some brokers may allow you to access the full range of analytical services in a paper trading account.
Futures trading is more risky than equity trading and demands different knowledge from equity trading, So before coming to futures trading, understand futures trading well and then start futures trading. If you come into it without understanding the market and futures trading, then you are taking a huge risk.
Hello friends, if there is any doubt related to future trading, then you can comment below this post. We will answer your question as soon as possible.
