If Script is expected to be bullish, expected to rise from today 290 to 390 in the future. Future price is 300/. 4000/lot. In this scenario whether to buy or sell the future? Please discuss pros and cons
Welcome to the Upstox community!
If the price of stock (aka underlying) is expected to rise and one would like the trade in futures, they should be bought.
It is also called going long.
The benefits of buying futures compared to buying shares is that on a like-to-like basis, futures require lower capital and hence deliver superior ROI.
But unlike shares, where you can buy even 1 share, in futures one needs to trade in minimum quantity (i.e. lot size).
Hope this helps!
Why the Strike Price and future price for the same date differs. which one is best? what about liquidity on expiry. Is it good to Hold till last day of expiry or better to square off any time before?