Futures
How does futures trading work?
Futures trading lets you speculate on the price movement of assets—like stocks or indices—without needing to buy them outright. On FYERS, you trade futures contracts by paying a margin instead of the full contract value, giving you leveraged exposure ...
What is a futures contract?
A futures contract is a standardized legal agreement to buy or sell a specified quantity of an asset—such as stocks, indices, currencies, or commodities—at a set price on a future date. On FYERS, these contracts are traded on regulated exchanges and ...
What is rollover in futures trading?
Rollover in futures trading means shifting your open position from a contract nearing expiry to a later contract month. This allows traders to maintain market exposure without taking physical delivery or settling the position. How rollover works Exit ...
What is the cost of rolling over a position?
Rolling over a futures position involves closing the current contract and opening a new one, and this action comes with specific costs that traders should account for. Components of rollover cost Price differential: The difference in pricing between ...
Is it possible to retain futures positions post their expiration?
No, futures positions cannot be retained in the same contract after its expiration. Upon expiry, all futures contracts are mandatorily settled—either through cash settlement or physical delivery, depending on the asset. Maintaining exposure ...
How do leverage levels vary for intraday futures across different stocks?
Leverage in intraday futures trading varies depending on the characteristics of the underlying stock. Factors such as contract size, liquidity, and price volatility influence the margin required by exchanges, which in turn affects the leverage ...
Can I continue my intraday futures positions beyond the day?
Yes, you can seamlessly convert your intraday futures position into an overnight position at FYERS. This gives you the flexibility to maintain your market view beyond the trading day. Steps to convert an intraday futures position to overnight Go to ...
Do I get extra leverage for intraday futures positions?
No, extra leverage is no longer available for intraday futures trades due to regulatory changes. Earlier, brokers could offer reduced margin requirements for intraday positions compared to overnight ones. This is no longer permitted. Regulatory ...
Is there any limits for futures orders on the NSE?
Yes, the National Stock Exchange (NSE) enforces strict price and quantity limits for futures orders to promote orderly trading and prevent excessive speculation. Traders must operate within these defined boundaries when placing orders. Price limits ...
What to do in case of a margin shortfall at FYERS?
A margin shortfall in futures trading can put your open positions at risk. At FYERS, it’s essential to act quickly when notified of insufficient margins to avoid automatic square-offs or penalties. Steps to resolve a margin shortfall Check margin ...
How do I respond to an increased margin requirement?
When the margin requirement for your futures position increases, it’s crucial to act quickly to maintain your trade and avoid forced liquidation. Exchanges may revise margin requirements due to heightened volatility, market conditions, or regulatory ...
Can futures contract margin requirements vary?
Yes, margin requirements for futures contracts are not fixed and can change over time. These variations are typically based on changes in market volatility, liquidity, and regulatory updates. Reasons margin requirements change Volatility: Higher ...
How do I determine the margin blocked for futures trading?
The margin blocked for futures trading depends on the specific futures contract. Each contract has different price levels and lot sizes, which influence the margin required. Steps to check the margin To know the exact margin blocked for a particular ...
Can I short futures contracts without owning the underlying shares?
Yes, you can short futures contracts without owning the underlying shares. This is possible because futures contracts are settled in cash, so there is no need to hold the actual asset in your Demat account. How it works? Shorting a futures contract ...
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