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Futures: basic terminology

Posted By On 12/29/2007 01:28:00 AM Under
1. Long: It is associated with initiating a future position by buying a futures contract and one has the option of selling it at a later stage to square it.

2. Short: It is associated with initiation of a position by sellling a futures contract and than undertaking an opposite position by buying it back.

3. One can trade futures with the guidelines as per technical analysis.

4. Futures lots are generally equivalent to 2 lakh value, however now a thought process is on to reduce it to Rs 50,000.



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