How is futures trading different from equity trading?
• While in equity trading you can trade purely on delivery basis, in futures trading settlement is in cash. • You just need to have sufficient cash balance required for margins while taking positions in futures segment. • The buy/sell position in the futures segment can be continued till the expiry of the respective contract and can be squared off any time during the contract life. • There is no change in the demat balance in your account as futures transactions are cash settled as per the current regulations. • You can even buy/sell Index i.e. NIFTY in case of futures in NSE, whereas in case of equity, you can take positions only in stocks.
