Unlocking Investment Fundamentals

• 

  9 Chapters | Duration:

  8Futures

  This module explores the world of futures trading, covering key concepts, market dynamics, margin requirements, and how to effectively use futures for speculation and hedging.

Course Objectives

• 

  Understand the basics of futures and derivatives.

• 

  Learn the difference between futures and forwards.

• 

  Explore leverage and margin in futures trading.

• 

  Grasp key terminologies used in futures markets.

• 

  Understand how to use futures for hedging.

• Chapter - 1

  3 mins read

  Understanding Derivatives

  As the name implies, derivatives are financial instruments whose value is derived from another asset or instrument.

• Chapter - 2

  4 mins read

  Futures and Forwards Markets

  Let’s consider a practical scenario involving Maruti Suzuki. The company receives a government order to supply 500 vehicles in two months. To start production, it reaches out to its regular steel vendor, CarSteel Ltd, for a price quote.

• Chapter - 3

  4 mins read

  Key Futures Market Terminologies

  In the previous module, we introduced the concept of a futures contract. Now, it's time to solidify your grasp on the subject by exploring the core terminology used in the futures market. These terms form the foundation for understanding how futures trading works on platforms like m.Stock.

• Chapter - 4

  4 mins read

  Leverage and Margin in Futures

  Many market participants prefer trading in futures rather than directly in equities. Why? Because futures offer two major advantages: leverage and risk management. In this chapter, we break down the concept of leverage, how margin plays into it, and how to manage both effectively while trading via m.Stock.

• Chapter - 5

  4 mins read

  What is Mark-to-Market (MTM)?

  Mark-to-Market (MTM) is a valuation method used in trading and finance to determine the current fair value of an asset or liability based on prevailing market conditions. This method is particularly relevant in segments like futures trading, where profits and losses are calculated on an MTM basis.

• Chapter - 6

  5 mins read

  What is Open Interest? A Deep Dive for Futures & Options Traders

  Open Interest, commonly referred to as OI, serves as a critical indicator in the derivatives market. It reflects the total number of active and outstanding contracts in futures and options that are yet to be settled. Think of it as a measure of market participation and liquidity an essential insight for any trader using platforms like m.Stock.

• Chapter - 7

  3 mins read

  m.Stock Futures Margin Calculator

  So far, we’ve seen that futures contracts allow you to trade based on price movements whether the market goes up or down. But another important feature of futures trading is leverage.

• Chapter - 8

  4 mins read

  Stock and Index Futures: A Complete Guide for Smart Trading

  Before diving into stock and index futures, it’s essential to understand what a future means in the financial context. Simply put, a future is a contract that obligates a buyer or seller to transact an asset at a predetermined price on a set date in the future.

• Chapter - 9

  4 mins read

  How to Hedge Using Futures: A Risk Management Strategy for Smart Traders

  In the trading world, hedging is a strategy to protect your investment against adverse price movements. It's a defensive approach where traders or investors open an opposite position in a related asset to minimize the potential impact of market volatility.