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What is Futures Contract? — Meaning, Definition & Example

Definition

A futures contract is a standardized agreement to buy or sell an asset at a predetermined price on a specific future date. In India, equity futures trade on NSE/BSE with lot sizes. Futures require margin money (typically 15-25% of contract value) and settle on expiry date.

💡 Real Example

Buying 1 lot of Nifty futures (50 units) at 22,000 with margin of ₹1.5 lakh. If Nifty goes to 22,500, profit = 50 × 500 = ₹25,000 (16.7% return on margin).

🇮🇳 Futures Contract in Hindi / हिंदी में

फ्यूचर्स कॉन्ट्रैक्ट — फ्यूचर्स कॉन्ट्रैक्ट एक निश्चित भविष्य की तारीख पर पूर्व-निर्धारित मूल्य पर किसी एसेट को खरीदने या बेचने का मानकीकृत समझौता है।

Futures Contract (Hinglish) — Futures contract ek agreement hai jisme ek specific future date pe predetermined price pe asset buy ya sell karna hota hai. Margin money lagta hai.

❓ Frequently Asked Questions

What is Futures Contract in simple words?
A futures contract is a standardized agreement to buy or sell an asset at a predetermined price on a specific future date. In India, equity futures trade on NSE/BSE with lot sizes. Futures require margin money (typically 15-25% of contract value) and settle on expiry date.
Can you give an example of Futures Contract?
Buying 1 lot of Nifty futures (50 units) at 22,000 with margin of ₹1.5 lakh. If Nifty goes to 22,500, profit = 50 × 500 = ₹25,000 (16.7% return on margin).
What is Futures Contract meaning in Hindi?
In Hindi, Futures Contract is called फ्यूचर्स कॉन्ट्रैक्ट. फ्यूचर्स कॉन्ट्रैक्ट एक निश्चित भविष्य की तारीख पर पूर्व-निर्धारित मूल्य पर किसी एसेट को खरीदने या बेचने का मानकीकृत समझौता है।