Futures Trade

Process of Futures Trade

Any persons interested in futures trade can enter the futures market for purchase or sale.

• The seller need not have the stock of the commodity while entering as seller in the market.

• There is no need for physical delivery of the product if the product is purchased before the contract date or if purchased lot is sold before the contract date.

• If the transaction is not squared like this, the seller should deliver the product to the warehouse and settle the contract.  Similarly the buyer should take the delivery of the product after remitting the contracted price.

Last Updated : 04-01-2008