Futures

Introduction to Futures
Let’s start with a small story that will allow us to understand the working of futures market. Two women, Sita and Noor are both active in the housing marke...
Mon, 28 Jun, 2021 at 2:55 PM
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...
Mon, 28 Jun, 2021 at 3:07 PM
Fair Value
Based on the example in the previous article the price at which Sita agreed to buy the apartment from Noor was Rs.1.1 crore. This is the price that Sita wil...
Mon, 28 Jun, 2021 at 3:10 PM
Future Close Price
Futures are standardized contracts on stocks and/or bonds, traded on exchanges. In Tickertape screener you will find data regarding future contracts for dif...
Mon, 28 Jun, 2021 at 3:13 PM
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...
Mon, 28 Jun, 2021 at 3:14 PM
Basis
Basis is the difference between the current price of the future contract and the current price of the underlying. In the article of Fair value, we establish...
Mon, 28 Jun, 2021 at 3:16 PM
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 exa...
Mon, 28 Jun, 2021 at 3:19 PM
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
1W Change in Future OI is calculated as percentage change in OI between 5 trading days. Suppose the open interest (OI) position on Friday is 100 and on last...
Mon, 28 Jun, 2021 at 3:20 PM
1D Change in Future 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...
Mon, 18 Jan, 2021 at 3:13 PM