Introducing the futures contract

LIVE
 / 
  • Subtitles
  • Quality
Quality
    Subtitles
      🔉🔉🔉 CLICK TO UNMUTE 🔉🔉🔉
      • Copy video url at current time
      • Exit Fullscreen (f)
      0:00
      PRIVATE CONTENT
      OK
      Enter password to view
      Please enter valid password!
      Lesson summary:

      In the previous video, the concept of forwards market was discussed. In this video, we will understand what futures are. Futures are a part of the futures contract which involves a buyer and a seller. Unlike a forwards contract, a futures contract has a standardised format and is regulated by a regulator to ensure that the buyer, seller, and intermediaries fulfill their obligations. There are several differences between futures and forwards contracts, but two of the main differences are that futures contracts are standardised and regulated. The first component of a futures contract is the underlying asset, which can be equity, gold, currency, or an index such as Nifty or Sensex. The lot size is the minimum amount of shares that can be traded, whereas the contract size is the number of shares multiplied by the price of the shares. The expiry date is the date when the contract ceases to exist, and the margin is a percentage of the total contract size that must be paid by both the buyer and the seller. In real-life example, the margin required is usually a percentage of the total contract size, and in the case of futures contracts in India, a search for the underlying asset, such as Infosys, on NSC India’s website can show the details of the contract, including the margin requirements.

      WELCOME BACK

      Page content will refresh after entry.

      INSTANT GUEST MEMBERSHIP ▸ FREE FOREVER ACCESS EVENTS, EDUCATION & MORE

      BLOOMBERG GLOBAL NEWS

      Bloomberg video news feed with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED

      RBA ECONOMIC UPDATES

      Periodic updates on the Australian economy, direct from the RBA, with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED

      US FEDERAL RESERVE UPDATES

      Bloomberg News focussed upon the Federal Reserve, with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED

      FX/GLOBAL BRIEFS

      Brief global updates with a focus upon currencies, with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED

      ASX MARKET UPDATES

      ASX-focussed updates, with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED

      BLOOMBERG BRIEFS

      Global briefs from Bloomberg with live charts, watchlists & fundamentals
      Audio/video feed with live charts, watchlists & fundamentals
      CHARTS + FEED