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Futures
A futures contract obliges both parties to trade an asset, such as an index, share or commodity, at an agreed price on a set date. Traders put down only a margin, so small price moves create large gains or losses.
Why It Matters
Futures let you bet big with little money down, which cuts both ways.
In India
A trader buying Nifty futures gains if the Nifty rises before expiry and loses if it falls.