Stock futures are derivative contracts that give you the power to buy or sell a set of stocks at a fixed price by a certain date. Once you buy the contract, you are obligated to uphold the terms of the agreement.
If you are an intraday trader then you know that stock market is very volatile. In this volatile market you must know how to do secure trading to increase your returns and investment. If you are going to invest your money in market so first you must know about the Market. You should know where to invest and how much to invest? If you know the answers of these questions then you are ready to trade.
Your first work is to start your trading with less risk then you could invest your money in stock market. This is a platform where you just need to pay less amount which is the lot size of the company and you are able to buy Stock Future more than 5 times of your investment. In Stock Futures you can square off your position if you are going in to loss, or want to make profit. You can square off your position on contract basis (Contract is finished in 3 months).
You want maximum profit so stock Future is market where you can hold your stocks and square-off your position when you are in profit. And if you are going in loss, and want to minimize the loss then by hedging you can minimize your loss and you can also maximize your profit by hedging. Last Thursday of month is the Expiry date of the contract. And that Thursday you have to square-off your position and clear your account.
Why invest in Stock Future?
If you are going to invest in Stock Futures that means you are going to right path because in it you can do the Trading with very less amount, and the percentage of the risk is also less than the other markets. In Stock Futures you get the time for settlement of stocks means you get the time to convert your loss into profit.
If you are a beginner and want to do trading in Stock Futures then first you need to know about the basics of the Future market and start your Trading with Stock Future and consult with a Good advisory firm and update yourself with the current market movement. These basics and the advisory firm from which you take help for your trading tells you exactly when to buy and when to sell the stocks. They also recommend you the stock which you should buy or sell with entry level and proper achievable targets.
In both the situation when market is bearish or bullish you should be able to make your profit by gaining the knowledge and be a good investor and trader.
If you have any Query you can avail Stock Future Tips from TradeNexa which is the best Investment advisory firm.