ABC T Rs. 180 from Rs. 160 ABC ¥ Rs. 150 from Rs. 160 185 180 (Ram View) 180 4 175 - 170 = 165 i160 1 arn a = A S722. 150 (Shyam View) 150 mar — Future Price ~/ Underlying Market Price —- Futures view of Ram & Shyam Enter in Futures Contract ooocs iat Futures Price June Lot size gcd PAT gy rey Sea ceo ai) Shee cul Bl tieldee (Mencia Ue aC Pete e Pei ied ee calcd eect 8 = Start Expiry — Underlying Market Price - — Futures Price Lite eioe nse Tea ike ee[ 0 Oem ie ee na Led Remi Been cence ee ee aly vig Key Terminologies Contract Value Lot Size x Futures price x Number of Lots Reference price on which Initial Margin is Calculated Initial Margin Initial Deposit with exchange to enter into Trade by both parties For Protection against non-payment risk % as defined by Exchange depending on the trade Mark to Market Difference between Open and Close price Paid by the loss making party to profit making party on Daily Basis Volume and Open Interest When 1 Buy and 1 Sell Trade takes place then Volume is 1 All open positions in Market when calculated gives us Open Interest The Trade as it happens between Ram & Shyam cin Soa Cr Sieg fae} =o erate) E=CxD F=CxD Dee Ast June - Start - 160 200 - 6400 -6400 ‘ita! Matgin) th June 160 165 200 5 1000 -1000 15th June 165 168 200 3 00 -600 2and June 168 166 200 2 400 400 29th June - End 166 170 200 4 800 -800 ea) aCe *+Note - Day's Close Price becomes next day Open Price as the difference of the day is paid to profit earner. Buyer gain is sellers loss, similarly Seller gain is Buyers loss. WISE ADVISOR SAYS Trading in Futures has below mentioned benefits; High Leverage — The Investor can trade a much larger quantity of shares at a low margin amount and can earn higher profit ee ama NL ate acon die EC eT L ol nL od Lal High Liquidity - Most Futures are very liquid and hu: Nae ice it icele(=1¢ me trading day