Futures Contract
A binding deal to buy or sell later at a price you lock in today.
Definition
A futures contract is a standardised, exchange-traded agreement to buy or sell an underlying asset at a pre-agreed price on a specified future date. On NSE and MCX, contracts have fixed lot sizes and expiry dates, and are backed by the clearing corporation, which removes counterparty risk.
Why it matters
Futures let traders take leveraged directional positions and let hedgers lock in prices. You post only margin, not the full contract value, and positions are settled daily through mark-to-market (MTM) so profits and losses hit your account each day. This leverage magnifies both gains and losses, which is why margin and risk control matter so much.
Example
You buy one Nifty futures contract at 22,000 with a lot size of 50, so the notional value is 11,00,000. If Nifty rises to 22,100, you gain 100 points multiplied by 50, or 5,000, credited via daily MTM, without ever paying the full 11 lakh, only the margin.
See it live
Track index futures alongside the option chain on TradePulse to read positioning and the cash-futures basis.