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<h3 style="color: #666; font-size: 14px; line-height: 1.8; margin: 15px 0;">Let's understand with an example of futures trading in the Indian stock market:</h3>

<p style="color: #666; font-size: 14px; line-height: 1.8; margin: 15px 0;">Let's say you anticipate that the stock of XYZ Company, currently trading at Rs. 100 per share, will increase in value over the next month. You decide to enter into a futures contract to capitalize on this anticipated price rise.</p>

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<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">1. Contract Selection:</strong> You choose the XYZ Company futures contract with a contract size of 100 shares. The contract's expiration is one month from now.</p>

<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">2. Buying the Contract:</strong> You buy one XYZ Company futures contract at the current market price, which is Rs. 100 per share. Therefore, the total contract value is Rs. 10,000 (Rs. 100 per share * 100 shares).</p>

<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">3. Margin Requirement:</strong> As per the exchange's margin requirements, you need to deposit an initial margin amount, let's say Rs. 2,000, to your trading account. This margin serves as collateral and ensures your commitment to the trade.</p>

<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">4. Monitoring the Trade:</strong> Over the next few weeks, you closely monitor the price movements of XYZ Company's stock. If the stock price rises as anticipated, the value of your futures contract will increase correspondingly.</p>

<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">5. Exiting the Trade:</strong> Suppose the stock price reaches Rs. 120 per share, and you decide to exit the trade to realize your profit. You sell your futures contract at the prevailing market price of Rs. 120 per share. The total contract value is now Rs. 12,000 (Rs. 120 per share * 100 shares).</p>

<p style="color: #666; font-size: 14px; margin: 8px 0;"><strong style="color: #007bff;">6. Profit Calculation:</strong> By selling the futures contract at Rs. 120 per share, you have made a profit of Rs. 2,000 (Rs. 12,000 - Rs. 10,000) on the trade. This profit is earned based on the price difference between your entry and exit points.</p>
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<p style="color: #666; font-size: 14px; line-height: 1.8; margin: 15px 0;">It's important to note that futures trading involves risks, and the actual outcome of a trade may result in profits or losses. This example is simplified and does not take into account factors like brokerage fees, taxes, or other costs associated with futures trading. Understanding market dynamics, conducting thorough research, and practicing risk management are crucial when engaging in futures trading.</p>
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