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What is Stock Futures? How It’s Works?

Stock Futures

What is Stock Futures? How It’s Works?

                                         

what is Stock?

In simple and easy words we says that stock represent the units of share owned by Investor in a company or partial ownership in company. 

what is stock futures?

Stock Futures Means contract or agreement between two or more parties to buy or sell particular undelaying asset or resources at a future date.

what are stock futures doing right now?

SymbolPriceChange
NAS FUT1932.32+1.01
S&P MID MINI3,107.21+2.023
S&P FUT5,650.2+1.01
DOW FUT41,120.7+1.09
Stock Futures now a days

why trade future over stocks?

When you buy or sell the stock then Most stocks only allow limited trading day or overnight margin trading . Future trade allows you potentially great profits compared to the stocks.

Difference between stock and stock future?

In simple terms we says that stock represent the private ownership in company and future is a contract or agreement with expiration dates. 

How Do stock futures work?

let’s assume a simple  scenario  you invested in a future contract  for 50 shares of Tesla company at a value of Rs. 5000 each share at a certain date . when your future contract is expired you received  shared as same price Rs.5000 per share you invested not the present price of the share.

How to pick Future market to trade?

Following are the key point that help’s you for better trade

  1. Define the objectives of your investment
  2. Identify the Risk and challenges may be face in future
  3. Enhance your search
  4. research about different markets trends
  5. Evaluate market flexibility
  6. analyze market condition
  7. check trading Time
  8. Evalute trading strategy
  9. Supply and demand 

Why ?

1: No Restrictions

2: no trading rules

3: Flexibale

4: increase capital

5: virtual 24-hours trading 

Risk:

Leverage Risk: when you invested in a company you are not 100% sured shares of this company will give the profit.

You can lose your initial investment when market trend goes against to  your expectations.

Are stock future Risky?

Yes it is possible you lose your initially invested money when trading going against your expectations.