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Stock Broking

Futures Contract

Obligation to buy/sell at a set price on a future date.

A futures contract locks in price today for settlement later — long profits if the price rises, short if it falls. Unlike options, there's no premium and no choice: both sides must honour the contract at expiry (or square off earlier). Retail traders use stock and index futures with margin, marked-to-market daily.

Example

Nifty futures at 24,000: long gains ~₹50 per point rise per lot; a 200-point fall costs ~₹10,000.