The Simplest Guide to Futures Pricing Formula
5paisa Research Team
Last Updated: 02 Apr, 2025 10:37 AM IST

Content
- Introduction
- What is Futures Trading?
- Futures Contract Formula Explained
- Experience Super-Profitable Futures Trading With 5paisa
Introduction
You can generally find four types of traders in the market - price action traders, technical traders, news-based traders, and quantitative traders. While the former three types of traders do not usually think about futures pricing, a quantitative trader's life moves around things like futures pricing formula, futures price calculation, futures contract formula, and the likes. All futures trading strategies implemented by them involve a deep understanding of the futures price calculation method. This article discusses the best technique to calculate the price of a futures contract to estimate its fair value before futures trading.
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