00:02If you think that in futures you just have to buy and sell then you must watch this video once.
00:09See
00:09Because what do you buy in futures, do you buy Nifty or any actual stop in your demat account?
00:18If none of these things happen then what is futures today?
00:24We understand in very simple language
00:26A futures contract is a derivatives contract, i.e. a financial contract whose value is linked to the price of an underlying asset.
00:35The underlying can be a stock, nifty, bank nifty or any other eligible financial instrument
00:44Now let us try to understand this with a simple example.
00:48Let's assume Nifty is currently trading at 24,000
00:51If you think that Nifty will go further up then you can take long questions in Nifty futures.
00:59Aman, Nifty increased from 24,000 to 24,000, you got a favorable moment of 200 points
01:06But if Nifty falls from 24,000 to 23,800, you get an unfavorable moment of 200 points.
01:14This means that the price moment of the underlying in futures directly impacts your positions.
01:21Now here's a very important thing.
01:23You cannot buy any quantity you wish in the future.
01:28Futures contracts trade in a standardized load size
01:33Assume that the load size of this futures contract is 65
01:36If there is a moment of one point in the price, then it will affect the entire load.
01:421 into 65 is equal to 65 and if the price moves 200 points in your favor
01:49So the theoretical profit will be 200 into 65
01:54But if the same 200 points move against you, there could be a theoretical loss.
02:01Therefore, in futures, it is not enough to just see how many points the market moved.
02:06You should also know the load size of the contract.
02:10Now another very important question
02:13If the full value of a futures contract is large, do you have to pay its full value upfront?
02:20No, you have to maintain the required margin to take positions in futures.
02:27And this business gives leverage in the future.
02:30But always remember one more thing here.
02:33Low margin does not necessarily mean low risk.
02:37Because your actual market exposure may be much larger than the margin
02:42Therefore, even a small market moment can have a big impact on your trading capital.
02:48Now another special thing about the future
02:50If you cannot trade by just buying
02:53If you think the market will go up, you can ask long questions.
02:59And if you think the market will go down, you can also take short positions.
03:05This means that in futures, there is a possibility of taking positions in both the upward and downward directions of the market.
03:11But how do long and short work practically?
03:16We will understand this with a very simple example in the next video.
03:20So remember three things about the future from today's video.
03:24The first futures is a derivatives contract
03:27Secondly, its value is linked to the price moment of the underlying.
03:32And thirdly, it is very important to understand load size and margin in the future.
03:37If you are learning F&O from the very basics
03:41So please subscribe and follow this series.
03:43What is long and short in futures in the next video
03:48And we will understand it not only through definition but also with a practical example.
03:53Because here we treat trading not gambling
03:56Rather, it is understood as knowledge, discipline and risk management.
03:59There is no pretense, no promises
04:01Only real market learning
Comments