Futures Trading
Understand futures contracts, lot sizes, margin requirements, and how to trade index and stock futures on NSE.
What Are Futures?
Futures are standardized derivative contracts to buy or sell an underlying asset at a predetermined price on a future date. Unlike options, futures carry an obligation — both the buyer and seller must honour the contract at expiry. In India, futures are available on indices (Nifty, BankNifty) and individual stocks on NSE, and commodities on MCX.
Lot Size Calculation
NIFTY Price
24,500
Lot Size
25
Contract Value
₹6.12L
1 point move = ₹25 P&L per lot
Lot Size & Contract Value
Futures are traded in fixed lot sizes — you can't buy a single share. For example, Nifty futures have a lot size of 25, so one contract = 25 × Nifty price. If Nifty is at 24,500, one lot is worth approximately ₹6,12,500. This means even small price movements have a large rupee impact, which is why understanding lot sizes and contract values is critical before trading.
Margin Requirement
Margin Requirements
Since futures carry unlimited risk, exchanges require margin money — a fraction of the total contract value — as a security deposit. SPAN margin covers the maximum possible one-day loss, and Exposure margin adds a buffer. In Virtual Trading 2.0, margin is deducted from your virtual funds when you take a futures position. Always check the margin calculator before placing large trades.
Mark-to-Market Settlement
Expiry & Rollover
Index futures expire on the last Thursday of every month. As expiry approaches, futures prices converge with the spot price (basis narrows). If you want to continue your position beyond expiry, you need to roll over — close the current month's contract and open the next month's contract. Rolling over incurs transaction costs and basis differences.
Expiry & Rollover
Mar
Active
Apr
Future
May
Future
Close Mar & open Apr before last Thursday
Key Takeaways
- 1
Futures are obligations — both buyer and seller must settle at expiry.
- 2
Lot sizes mean large rupee impact even with small price moves.
- 3
Margin is a security deposit, not the full contract value — manage it carefully.
- 4
Always roll over positions before expiry to avoid physical settlement.
Pro Tip
Use the margin calculator in the app before placing any futures trade. Never use more than 30% of your virtual capital as margin for a single trade — diversify to manage risk.