Future Basic Question

Dear All,

Hello.... I love to be part of Traderji.com. It is one of the wonderful forums for Indian Retail investors. I have recently joined the forum to provide to get the help & as well help other in case I am able to..
This questions to regarding Future Nifty Index :

Currently ( Jan - 2009 ), In case of Futures Nifty Index, If Market goes down you lose the money. I feel that advantage of Future is take advantage of Volatility of Market... When market is Up you sell your Future Index to book profits & when market is down you exit to enter at low level of Index. Please correct if I am right.

Rgds,

hzzg6y

To profit from market, we always attempt to BUY LOW and SELL HIGH.
Buy /sell transaction can be in different sequence. If we BUY first, then we are taking bullish/long position. If we Sell first, then we are taking bearish/short position.

We can profit even if market is going down. We just have to sell first at higher level and buy it back later at lower level.

To play the volatility, Options are the right instrument. I am not sure if futures give u that flexibility. You can hedge your portfolio to some extent.. but options give u lot more flexibilty to hedge, play volatility or even profit from the range bound market.

Happy Trading.