What is Futures Trading?
5paisa Research Team
Last Updated: 26 Aug, 2024 04:36 PM IST

Content
- Introduction
- What is a Futures Contract?
- The Two Types of Futures Traders
- What is Futures Trading?
- The Benefits of Futures Trading
- 5paisa Makes Your Futures Trading Journey Simple
Introduction
Futures trading is a part of future and option trading in the derivatives segment of the stock market. Investors trading in futures speculates the price of a stock, currency, commodity, or benchmark in future. Futures trading is a subtype of derivative trading. A derivative is a financial contract that gets its value from an underlying asset’s price movement. Simply put, a derivative tracks another asset’s price. And, through futures and options trading, an investor tries to profit from the price movement of a derivative.
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