Investors can move large positions relatively with small invested capital as products on the futures market are always traded using financial leverage.
With futures contracts investors can easily take both long and short positions on any underlying instrument, hence these are simple tools to profit from both rising and declining asset prices.
The continuously widening product range offered through the BSE consists of futures contracts based on the following instruments:
- equity indices
- individual stocks
- currencies (foreign exchange)
Futures products on the Exchange are standardized. The Exchange sets the parameters of futures contracts in order to enhance liquidity and to mirror the needs of different marker players. Among these parameters expiration dates, contract size and delivery method are the most important.