Chapter 2 - Introduction to Futures

In this chapter, we will introduce Futures. We will start by defining what a futures is and how it is different from forwards. We will talk about a few basic, yet vital futures-related terminologies. More importantly, we shall introduce the concept of Margin and present a simple example of how the futures P&L is calculated. We shall conclude this chapter by talking about various participants in the futures market as well as various futures instruments that are available for trading in India.

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