Future Contract trading settlement
Hi Experts,
I am a novice in stock market trying to understand the working and applications of futures contract. Difficult to understand how Contracts are bought and sold. This may sound silly question, but please help me to understand.
Let’s suppose there are two people, “X” & “Y” trading on NSE among many others.
Next day 4th March 2021 assuming market goes up, X wants to close this contract and make profit.
2. How will X close the contract? Can the short person on this contract say that, he\she does not to close the contract?
3. Vice versa for Y as well?
Please suggest books to understand Indian futures market.
Thank you.
Hi Experts,
I am a novice in stock market trying to understand the working and applications of futures contract. Difficult to understand how Contracts are bought and sold. This may sound silly question, but please help me to understand.
Let’s suppose there are two people, “X” & “Y” trading on NSE among many others.
- X bought (long) a 25th March 2021 NIFTY future contract on 3rd March 2021.
- Y sold (short) a 25th March 2021 NIFTY future contract on the same day.
Next day 4th March 2021 assuming market goes up, X wants to close this contract and make profit.
2. How will X close the contract? Can the short person on this contract say that, he\she does not to close the contract?
3. Vice versa for Y as well?
Please suggest books to understand Indian futures market.
Thank you.