In Future
trading one can buy any number of shares. In Futures,
the trader buys a lot. The lot magnitude is set for every futures contract and
it varies from stock to stock & also from company to company.
Margin
payment:-
Buying
a Futures contract one need not pay the entire value of the contract but just
the margin. This margin sum is defined by the exchange. Let’s assume one buys a
1000 Futures contract of a particular company each share costing 50 Rs. This
will sum to Rs. 50000 (1000 X 50 Rs). The trader need to pay only about 15% to
20% of that sum and this sum is called the margin amount. Assuming 15% the
trader need to pay Rs. 7500 & not Rs. 50000
How
to make or lose money:-...