🟢 What is #FutureTarding ?

It’s like making a deal today about the price of something in the future.

👉 Example:

You and I agree today:

You will buy 1 bag of sugar from me for Rs. 1,000 after 1 month.

If sugar price goes up after 1 month, you win.

If sugar price goes down, I win.

That’s a futures contract.

🔑 Key Points

Two sides:

Buyer (thinks price will go UP)

Seller (thinks price will go DOWN) that is only thinking not actual.

In futures no need to pay full price:

You just keep some deposit (margin) with the broker.

This gives you leverage (small money controls big trade). In simple terms it will make your money upto many times for your trade

Daily profit/loss:

If price moves in your favor → you earn money.

If it goes against you → money is cut from your margin.

If your margin goes too low → broker asks for more money (margin call).

Margin call simple means that your account is going to liquidate that is going to washed in simple words.

🧮 Simple Example

1 Gold futures contract = Rs. 100,000

You only keep 10% margin = Rs. 10,000

If gold price goes up by 5% (Rs. 5,000):

✅ You earn Rs. 5,000 → 50% profit on your margin.

If gold price goes down by 5% (Rs. 5,000):

❌ You lose Rs. 5,000 → 50% loss on your margin.

So, remember profit/loss is much bigger compared to the money you put in.

🎯 Why do people use futures?

Farmers/companies → fix prices in advance (reduce risk).

Traders → earn money by guessing price direction.

Investors → quickly buy/sell big assets with small money.

⚠️ Greater Risks

High risk because of leverage (can lose money very fast).

Margin calls if market moves against you.

Need discipline & knowledge before trading.

👉 In very simple words:

Futures trading = betting on future price of an asset. You only pay a small deposit (margin), but your profit or loss will be on the full amount. That’s why profit can be big, but loss can also be very big.