What is Futures Trading? Real-Life Example
46sUses a relatable wedding gold analogy to explain complex futures trading, making it accessible and engaging for beginners.
▶ Play ClipThis video explains the concepts of futures trading and perpetual futures trading, using relatable examples to illustrate how these financial instruments work. The presenter also promotes Delta Exchange, a crypto derivatives platform, and offers a bonus for new users.
Futures trading involves a contract to buy or sell an asset at a predetermined price on a future date. It is used for risk management and speculation.
A father needing gold for his daughter's wedding in 3 months locks in the current price of ₹5000 per gram by entering a futures contract with a jeweler, protecting against price increases.
Delta Exchange is India's only crypto derivatives exchange, offering crypto futures trading. Users get a 10% bonus on deposits via the provided link.
With $1000, a trader can control a larger position using leverage. If the asset price rises from $1000 to $1050, the profit is magnified; if it falls to $950, losses are also magnified.
Perpetual futures are similar to traditional futures but have no expiry date, allowing traders to hold positions indefinitely. They are like a continuous contract.
Futures and perpetual futures are powerful tools for hedging and speculation, but they carry significant risk due to leverage. Beginners should start with small trades to understand the mechanics.
"The title promises an explanation of Binance futures but focuses on Delta Exchange; still delivers on explaining futures concepts."
What is futures trading?
A contract to buy or sell an asset at a predetermined price on a future date.
00:06
What are the two main reasons for futures trading?
Risk management and speculation.
01:38
How does leverage affect profits and losses in futures trading?
Leverage magnifies both profits and losses, allowing traders to control larger positions with less capital.
03:07
What is the key difference between perpetual futures and traditional futures?
Perpetual futures have no expiry date, allowing traders to hold positions indefinitely.
04:18
What bonus does Delta Exchange offer for new users via the provided link?
A 10% bonus on deposits.
02:24
Real-Life Futures Example
Illustrates futures trading with a relatable scenario of locking in gold prices for a wedding.
00:52Leverage Effect
Demonstrates how leverage amplifies both gains and losses, a key risk in futures trading.
03:07Perpetual Futures Definition
Clearly explains the unique feature of perpetual futures: no expiry date.
04:18[00:06] what is future trading and what are per pack only tweets which are and what are per pack only tweets which are what is the difference between the two I am also going to tell you that before that
[00:22] because I upload trading and investigative videos regularly so investigative videos regularly so
[00:37] what is future trading second trading means a contract to send future bars to any commodity currency trading means a contract to send future bars to any commodity currency fixed bit for example daughter is getting married after 3 months and her father has to
[00:52] buy 20 grams of gold for the wedding today the price of gold is ₹5000 grand his father feels that since the wedding season is about to come so the price of gold will increase so what does he do he goes to the jeweler and tells him that
[01:07] from today I want to buy 20 grams of gold at the rate of ₹5000 After 3 minutes, if the layer feels that the price of gold has already been set and it could fall sharply, he also agrees, and an agreement is reached between the two. 20 grams of gold is worth Rs. 500, which is equivalent to
[01:23] Rs. 1 lakh. So, employment and some other exchange rates will be at 10019 and after 3 minutes, it will be at 20019. We can take 20 grams of gold, whether We can take 20 grams of gold, whether
[01:38] agreement. This is called futures trading. Futures trading is done due to research, one for risk management and the other for limit. So, this was a real-life example.
[01:52] If I were to give an example of a tractor, it would be something like this. But before that, I would like to tell you about data access, which is India's only crypto derivatives exchange. You can trade crypto currency futures here. You now
[02:07] get 200. Meaning, if you have more food, you can invest 10,000 and invest a lot of it. With ladies, you can earn profit. And if OBC is launched, that too contributes more, so you can set retirement as per your convenience. So, NH-28 Accept 2002, there
[02:24] is a link in the description below. From that link, you link in the description below. By creating an account through that link, you will get a 10% bonus on office deposits. If you deposit $500 in one go, you will
[02:40] get a bonus of ₹50 on that. Friends, if you are already interested in Delta Action, then you can earn profit in it. There is a link in the description below. By creating an account through that link, you can start training and
[02:54] take advantage of the 20% bonus on futures deposit. So, friends, I just told you what futures trading is and gave an example of its real life use. And if the example of a tractor If I give it to you, it will be something like this, I have to do so many rituals in Sapoch
[03:07] and I have $1000, it is a decent price of $1000, so if I like the term in gas, you can buy only one term, but if I trade in future, then I will get numbers there, if I take tech news in support, then I
[03:22] take tech news in support, then I and after some time, the price of this serum increases to 1050, the problem is, you had a increases to 1050, the problem is, you had a profit of 500 more, I had 1502, my
[03:35] two total $15 measurement, if the price of this serum decreases to $250, you would have a loss of $500, then my $1000 gets reduced by $500 and I am left with only 500 more, friends, in the first example, that
[03:49] person had to buy gold, so on the day of expiry, he paid the remaining money and took the gold, but in the second example, the measurer will keep me with this serum No, I wanted personal because if I stayed longer, my profits would be higher. I went to the office and launched, so there was
[04:04] more contribution there. But I traded in my kitchen for Europe. I didn't trade a single wicket. Where I saw a profit, I marked the minute red cross and booked the profit. So this is called options trading. Now let me tell you what picture futures
[04:18] trading is. Picture futures trading is similar to futures trading, except it doesn't have an expiry date. This means traders can fold their positions for as long as they want. You can think of it like a normal tourist wedding.
[04:31] You have 1000 rupees and you can sell them on one side for 13 extension reminders. We
[04:43] after doing the medical shop, when he arrives home, Hooda will withdraw the profit. This amount will be yours. You must have understood what futures trading is and what is featured in it. If you still don't understand, then start with small tasks and
[04:57] everything will become clear to you. So friends. If you got a chance from this then please like it and tell us how you liked this video by commenting in the comment section below and the link is given in the description below, from that you can create an account on deductions
[05:12] and you can get the benefit of ten percent discount on deposit, can get the benefit of ten percent discount on deposit, note these directions.
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