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.