BINANCE FUTURE TRADING FULL DETAILS IN TAMIL. #future #futuretrading #binancefutures #binancefuturestrading #binancefuture #crypto #cryptocurrency #cryptonews #cryptocurrencies #taxhero binance account opening link : https://accounts.binance.me/en/regist... wazirx account opening link : https://wazirx.com/invite/fq4qbatn bitmart account opening link : https://h5.bitmart.com/invite-gift/en... my twitter account link : https://twitter.com/Arun_cryp?t=KRYDz... Disclaimer : this video is not force to you buy any cryptocurrency or invest anything. this video all about just sharing the current market information and news....... before investing you can do your own research .......this video is useful to your research purposes. keep safe investment. What is futures trading? In order to understand futures trading, you should know what derivatives trading is. Derivatives are financial contracts that derive their value from the price movement of another financial item. The price of a derivative tracks the price of another (i.e. underlying) from which it gets its value. Key Points Derivatives are financial contracts that derive their value from the price movement of another financial item. Futures are primarily used for hedging commodity price-fluctuation risks or for taking advantage of price movements. When such a contract is initiated, the investor need not pay the full amount for a contract, only a small upfront payment is required. Futures contract is one such financial instrument wherein a contract or agreement is formed between a buyer (the one with the long position) and seller (the one with the short position) and the buyer agrees to purchase a derivative or index at a specified time in the future for a fixed price. As time passes, the contract’s price changes relative to the fixed price at which the trade was done and this creates profit or loss for the trader. Every contract is monitored by the stock exchanges who settle this trade and stock exchanges. How futures trading differs from other financial instruments Firstly, the value of futures depends on that of another derivative, so it has no inherent value in itself. The contract lasts only for a particular time period and has an expiration date, unlike other financial instruments. When you buy a stock, it represents equity in a company and can be held for a long time, whereas futures contracts have a fixed time period. This is why the market direction and timing are vital while considering futures trading. Perhaps the most important difference between futures trading and other financial instruments would be in the use of leverage. Leverage in future trading So we know that futures trading is a contract for investing in a derivative. When such a contract is initiated, the investor need not pay the full amount for a contract, only a small upfront payment is required. It’s an initial margin of the total value that is required to initiate the contract. The margin and maintenance value are set by the exchanges. This is one of the most important aspects that distinguish futures market from other financial instruments.