Trading in Future Contracts- A Complete Guide

Hey Tradex traders! Ready to take your trading to the next level? The exciting world of futures trading is there for those trading enthusiasts! But before you jump in, let the top future trading app equip you with the knowledge to understand this market with confidence. Buckle up, because we’re about to unravel the ins and outs of futures like never before!

So, What Exactly Are Futures Contracts?

Imagine a deal struck today to buy or sell an asset at a predetermined price on a specific future date. That, in essence, is a futures contract. These contracts find their home on exchanges like NSE (National Stock Exchange) and MCX (Multi Commodity Exchange) in India, acting as a platform for traders to speculate on the price movements of various underlying assets.

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What Can You Trade in Futures in top future trading app?

The beauty of futures lies in its diversity. Here’s a glimpse into the treasure trove of tradable assets:

  • Commodities: Spice up your portfolio with gold, silver, crude oil, agricultural products like wheat and pulses, and more!
  • Currencies: Go global by trading currency pairs like USD/INR, EUR/INR, and others, gauging fluctuations in exchange rates.
  • Equity Indices: Fancy betting on the overall market direction? Nifty 50 and Bank Nifty futures let you do just that!

Why Should You Consider Futures Trading?

  • Leverage: Amplify your gains (and potential losses) with a smaller initial investment compared to buying the underlying asset outright.
  • Hedging: Futures act as a shield against price fluctuations in your existing holdings, minimizing risk.
  • Going Short: Unlike buying stocks where you profit from price increases, futures allow you to profit even when prices fall (short selling).
  • Market Speculation: Got a hunch about the future price movement of an asset? Futures let you capitalize on your predictions.

Okay, You Are Intrigued! How Does Futures Trading Work on Tradex?

Tradex, India’s top future trading app, makes futures trading a breeze. Here’s a simplified breakdown:

  1. Choose Your Underlying Asset: From the Tradex app, explore the wide range of futures contracts available.
  2. Decide Your Contract Size: Each contract has a predetermined quantity of the underlying asset (e.g., 100 grams of gold). Select the contract size that suits your trading strategy.
  3. Go Long or Short: Think the price will rise? Go long! Believe it will fall? Short selling is your friend!
  4. Set Your Margin: Since futures involve leverage, you’ll need to deposit a margin (a percentage of the contract value) to initiate the trade. Tradex will clearly display the margin requirement for each contract.
  5. Monitor and Manage: Keep a close eye on market movements and adjust your positions as needed to maximize profits or minimize losses. Tradex provides advanced charting tools and real-time market updates to empower your decisions.
  6. Square Off Before Expiry: Remember, futures contracts have expiry dates. Before that day arrives, you’ll need to square off your position by entering an opposite contract (buying if you sold short, and vice versa) to settle the trade.

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Wait, There’s More! A Reality Check for Futures Traders on

The allure of futures is undeniable, but it’s crucial to understand the inherent risks involved:

  • Volatility: Futures markets tend to be more volatile than the underlying asset itself. Price swings can be dramatic, leading to significant losses if you’re not prepared.
  • Leverage: While leverage can magnify gains, it can also amplify losses. Manage your risk carefully!
  • Margin Calls: If the market moves against you and your margin falls below the minimum requirement, you’ll receive a margin call from other future trading app. You’ll need to deposit additional funds or close your position to avoid forced liquidation (selling your holdings to meet the margin requirement), which can incur unwanted losses. But TradeX has a negative balance protection feature that helps you safeguard your money.

Ready to Trade Futures Like a Pro? Tradex equips you with everything you need:

  • Intuitive Interface: Our user-friendly app makes navigating futures contracts a breeze.
  • Real-time Market Data: Stay on top of market movements with live updates and insightful charts.
  • Advanced Order Types: Customize your trading strategies with a variety of order types like stop-loss and take-profit orders.
  • Educational Resources: Tradex offers a wealth of educational material to help you master the art of futures trading.

The Final Word: Are Futures Right for You?

Futures trading can be a powerful tool for experienced traders seeking advanced strategies and risk management techniques. So download the top future trading app today and strike gold!


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