How do I borrow money from the futures market, using shares as collateral?
Sell a million rupees of Nifty on the spot market. Make delivery, and get paid. This is your “borrowed funds”. Simultaneously, buy a million rupees of Nifty futures. Hold these positions till the futures expiration date. On the futures expiration date, buy back the Nifty shares on the spot market. When you pay for them, you are “repaying your loan”.
