All About Stock Future Stock Futures are financial contracts where the underlying asset is an individual stock. Stock Future is an agreement to buy or sell a specified quantity of underlying equity share for a future date at a price agreed upon between the buyer and seller. The contracts have standardized specifications like market lot, expiry day, unit of price quotation, tick size and method of settlement.
How to calculate stock future priced
Futures Price = Spot Price + Cost of Carry
Money Classic Research
What are the profits and losses in case of a Stock Futures position The profits and losses would depend upon the difference between the price at which the position is opened and the price at which it is closed. Let an investor have a long position of one November Stock "A" Futures @ 430. If the investor square up his position by selling November Stock "A" futures @ 450, the profit would be Rs. 20 per share. In case, the investor squares up his position by selling November Stock "A" futures @ 400, the loss would be Rs. 30 per share.
How are Stock Futures different from Stock Options? In stock options, the option buyer has the right and not the obligation, to buy or sell the underlying share. In case of stock futures, both the buyer and seller are obliged to buy/sell the underlying share. Risk-return profile is symmetric in case of single stock futures whereas in case of stock options payoff is asymmetric. The price of stock futures is affected mainly by the prices of the underlying stock whereas in case of stock options, volatility of the underlying stock affect the price along with the prices of the underlying stock.
Services offered to trade stock futures We offer quality but limited calls on an daily basis promptly to enter the trade We offer the most accurate tip with enough time around every call. We offer overview of the Stock before the market opens for the day We afford timely updates on the market We are ready to support our customers at any time over phone and chat regarding the trade We communicate through SMS and yahoo messengers to offers tips on the trade
Thanks Click here to More Information OR Just Give A Miss Call +91-9098533533 We Will Call You