Future contract is between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. These contracts are traded on a futures exchange. The party agreeing to take delivery of the underlying stock in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to deliver the stock in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties - the buyer hopes or expects that the stock price is going to increase, while the seller hopes or expects that it will decrease. Note that the contract itself costs nothing to enter; the buy/sell terminology is a linguistic convenience reflecting the position each party is taking (long or short).It gives all stock market Technical analysis chart. We provide back testing data in daily chart from 2005 in NSE buy sell signal software. It is live share market (stock) technical analysis software. In the software stop loss is half of target so trader gets more profit. Technical analysis software for Indian stock market is very important to get clear direction through technical analysis graph.
For risk management always trade in different stocks at a time, if one stock is giving loss other stocks will cover that loss & turns it into profit or at least no loss no profit. Diversify your portfolio, because if you keep all eggs in one basket & basket falls down all eggs will be broken. So always trade with different stocks of different sectors live Banking, IT, Energy, etc.
Margin Requirement: -For future trading your enquire margin money which is only 10% to 20 % of stock contract as per stock exchange. For example if you buy Reliance 250 shares at Rs 840 you require Rs 2,10,000 buy if you buy Reliance future its lot size is 250 & you need to pay only Rs 21000 to Rs 41000.
Short Sell: In future market you can hold or carry short sell position till expiry date which is every month’s last Thursday. But if you short sell in Cash segment/Shares it is compulsory to cover the position by 3:15 same day.