00:00Welcome to Part 8 of FNU Basics
00:02What is Load Size in Futures
00:05Nifty went up by 100 points in futures
00:08So how much profit will you make?
00:10Can we predict profit by looking at just 100 points?
00:15No
00:15Because to understand Profit and Low in Futures
00:19Another very important thing we need to understand is
00:22This is what we call the load size.
00:24So what is Load Size after all?
00:25And why does it have such a huge impact on your future profits and losses?
00:30Today we will understand this in a very easy way.
00:34What is Load Size
00:35First of all, understand
00:37Inside a Load in a Futures Contract
00:39What is the quantity or units of underlying assets?
00:43This is called the load size.
00:45That is, if the load size of a futures contract is 65
00:48So one load will contain 65 units.
00:50And if you take two loads
00:53So 65 into 2 means 130 units
00:55That means your total quantity will be 130 units.
00:59Now to understand with the example of this Nifty
01:01The current load size of Nifty Futures
01:03He's 65, we know that.
01:05So suppose we took a load in Nifty
01:07So your quantity will be 65 units
01:10Now suppose in Nifty Futures
01:12Price moves 100 points
01:14So according to the calculation
01:16Our calculation will be
01:18That's 100 points into 65, which means 65 rupees.
01:20That means a move of 100 points in one load.
01:23The profit and loss impact of the pass will be
01:27Before Applicable Charges and Other Adjustment
01:29If there are two loads
01:31Now suppose you have not just one load
01:34but for two loads
01:35That means one load is equal to 65 units.
01:37So 65 into 2 i.e. 130 units.
01:40Now if the market moves 100 points
01:43So 100 into 130 means 13,000 rupees
01:46That means the same movement of 100 points.
01:48in a load
01:496500 and in two loads
01:51Can give a profit and loads impact of ₹13,000
01:54This is the thing
01:56Also applies to risk
01:57But here a very
01:59It is also important for us to understand
02:01It is necessary that if
02:03The market moves in your favor
02:05So Profit and Loads Impact your
02:07May be in favor
02:08But if the market meets your expectations
02:11If the play goes then the same
02:13Even for calculation logs
02:14Will apply
02:15Therefore More Loads is equal to
02:18Bigger Position Size
02:19And Bigger Position Size means
02:21Bigger Profit and Loads Impact
02:23That means don't just look at profit.
02:25Understanding the risks is equally important.
02:28Why Load Size Is Important
02:30Now you can understand
02:32That just looking into the future is not enough.
02:35That Nifty moved 100 points today
02:38You should also know that
02:40What is the load size?
02:41Because Points Move
02:44Multiply by Load Size
02:45is equal to Profit and Loss Impact
02:47And if you have taken multiple loads
02:50So Points Move
02:52into Load Size
02:53into Number of Loads is equal to Profit and Loss Impact
02:56This is the basic foundation of Futures Profit and Loss Calculation
03:00So now we understand under Quick Summary
03:02Load Size
03:03In a Futures Contract
03:05Underline indicates the quantity or units
03:09A load is a fixed quantity
03:11represents
03:13Profit and Loss
03:14Market Points Move
03:15And depends on the load size
03:18And on taking multiple loads
03:20Profit and Loss Impact also
03:22Can increase proportionately
03:24Important
03:25And always remember one thing.
03:28Don't always assume the load size is fixed
03:31Exchange from time to time
03:33Load Size of Derivatives Contract
03:35Can revise
03:37Therefore, before taking an actual trade
03:39Current Applicable Load Size
03:41You must follow
03:42So the next thing someone says
03:45Nifty has moved only 100 points
03:47So don't just look at the points.
03:49Ask what is the load size
03:51Because in Futures Points into Load Size
03:55is equal to Profit and Loss Impact
03:58And Position Size is equal to Responsibility
04:01This is the basic foundation of understanding Futures Trading.
04:05Next video we talk about
04:07Now we have many important concepts of the futures cleared.
04:13What is First Futures?
04:14Long and Short, Margin, Leverage, Profit and Loss, Expiry
04:19And now the load size too.
04:21But now a practical question arises here.
04:24To take a futures position
04:27How much capital should we keep?
04:29And adjust your position size according to your risk.
04:34How should we tag
04:35We will discuss this further in Risk Management and Position Sizing.
04:40will understand this
04:41If you want to learn F&O from zero in a practical way
04:45So now No Chart Finance
04:47Please follow and subscribe
04:50And if you liked this video
04:52So like and share with your fellow traders too.
04:56Thank you for watching
04:57See you next video
