Can i do averaging for futures

Is it possible to do averaging for futures?

Yes, averaging can be done in F&Os just as it can be done in the cash segment.

However, it would be extremely ill advised because a) you’ll be adding to a losing position, which is never a good idea and b) you would be forced to buy minimum lot sizes of the respective contract and that can substantially increase the risk.

Please watch this video to understand the perils of averaging.

-Neha (


@Neha_Raghuraman The Op has only said averaging, and not averaging down.

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Thank you Neha for this information and advice.


I take your point. But I have been in the industry long enough (and having done all kinds of mistakes myself) , I know which way the wind typically blows :slight_smile: