Nifty 50
Sensex
US Tech 100
Dow Jones
FTSE
Dax
CAC
Nikkei 225
Hang Seng
SSE Composite
TAIEX
KOSPI
Gift Nifty
Strategy Indices
Broad Market Indices
Sectoral Indices
Thematic Indices
Home
Finance GlossaryFuture Trading
Future Trading
Definition of Future Trading
Futures trading is the buying and selling of futures contracts on a recognized exchange or over the counter. Futures contracts are derivatives that oblige a trader to buy or sell the underlying security at a predetermined price and date.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Trading futures is possible for equity shares, commodities, currencies, as well as interest rates. Those who trade futures are generally classified as speculators or hedgers.
Speculators trade futures to make a profit. Hedgers delve into futures trading to manage risk, which simply means protecting themselves from unfavorable movements in the market.
Related Terms
Futures
Futures are derivative contracts that serve as an agreement and obligation between two parties to buy or sell underlying securities at a pre-agreed price and date. Underlying securities in futures can be stocks, bonds, interest rates, currencies, and commodities.
Equity Trading
Equity trading refers to the buying and selling of equity shares on the primary and secondary market, either through a stock exchange or over the counter. Trading equity is done in many ways.
Some equity traders square-off their positions within one trading day. This is called intraday equity trading. Others look to ride price swings across days, weeks, or months. This is known as swing equity trading.
An individual who wants to engage in equity trading will need to open a trading & demat account. The charge for opening an equity trading account varies but the process is relatively simple.
Some equity traders square-off their positions within one trading day. This is called intraday equity trading. Others look to ride price swings across days, weeks, or months. This is known as swing equity trading.
An individual who wants to engage in equity trading will need to open a trading & demat account. The charge for opening an equity trading account varies but the process is relatively simple.
Modern Portfolio Theory (MPT)
Modern Portfolio Theory (MPT) is an investment framework that focuses on maximizing returns for a given level of risk through diversification. It suggests that combining assets with different risk and return characteristics can reduce overall portfolio risk, rather than evaluating investments in isolation.
Window Dressing
Window dressing is a strategy used by fund managers near reporting periods to improve the appearance of portfolio performance. This may involve selling underperforming stocks and buying well-known or strong-performing ones before disclosures, making the portfolio look more attractive to investors without changing long-term strategy.
Accrued Interest
An accrued interest is the interest incurred in the current accounting period but the actual interest is due to be paid or received in the next accounting period.
Direct Public Offerings
A Direct Public Offering or DPO allows a company to issue shares directly to the public without an intermediary like investment banks. In the process, the company becomes publicly traded.
The cost of a DPO is known to be relatively low compared to an IPO.
Furthermore, the issuer of the DPO has control over the issue price while the paperwork and effort involved is also comparatively low. That said, the company must go through proper regulatory procedures during the process.
The cost of a DPO is known to be relatively low compared to an IPO.
Furthermore, the issuer of the DPO has control over the issue price while the paperwork and effort involved is also comparatively low. That said, the company must go through proper regulatory procedures during the process.
Invest & Trade with a Trading
Platform That's #MadeForTrade
Open your Dhan Account in minutes!
