Futures

Introduction to Futures
Let’s start with a small story that will allow us to better understand the working of futures market. Two women, Sita and Noor are both active in the housin...
Fri, 30 Oct, 2020 at 1:34 AM
Future Open Interest
Let’s move beyond the example of Sita and Noor and consider the entire housing market of Mumbai. Just like the before mentioned characters, suppose 12 other...
Fri, 30 Oct, 2020 at 1:34 AM
Fair Value
Based on the example in the intro, the price at which Sita agreed to buy the apartment from Noor was Rs.1.1 crore. This is the price that Sita will pay at t...
Fri, 30 Oct, 2020 at 1:34 AM
Future Close Price
Futures are standardized contracts on stocks and/or bonds, traded on exchanges. In the screener you will find data regarding future contracts for different ...
Fri, 30 Oct, 2020 at 1:34 AM
Lot Size
In the example discussed in the intro, both parties entered into a futures contract to buy/sell a single apartment, hence the lot size is 1. Suppose they ha...
Fri, 30 Oct, 2020 at 1:34 AM
1D Change in Future OI
This is percentage change in open interest between 2 subsequent trading days. Suppose the open interest (OI) position on Monday is 100 and on Tuesday is 120...
Fri, 30 Oct, 2020 at 1:34 AM
1W Change in Future OI
The data item is calculated as percentage change in OI between 5 trading days. Suppose the open interest (OI) position on Friday is 100 and on last Friday i...
Fri, 30 Oct, 2020 at 1:34 AM
Future Volume
Volume refers to the total number of future contracts that have been executed on the stock exchange on any given trading day Let’s look at the same exampl...
Fri, 30 Oct, 2020 at 1:34 AM
1D Change in Volume
This is percentage change in total traded volume between 2 subsequent trading days. Suppose the total volume on Monday is 100 and on Friday it was 120, 1 da...
Fri, 30 Oct, 2020 at 1:34 AM
Basis
Basis is the difference between the current price of the future contract and the current price of the underlying. In our example of Sita and Noor, we establ...
Fri, 30 Oct, 2020 at 1:34 AM