Futures Trading-How it works in specific cases?

I am new to all this and need some answers to resolve my queries.
Futures trading

Please explain what happens in following scenario
1 lot 10 shares each for example.
Day 1 - buy 1 lot at closing price let say 100 rs.

Day 2 - opens with gap up of 10 points
Almost at end of the day it falls 5 points.
So now price is 105.
Now I decide to sell at Day 2 ends.

So what do I make here
Loss of 5 rs per share I.e50 rs or profit of 5 rs per share?

Any help will be appreciated. Thanks.

Everything that you want to know about Futures trading is here - https://zerodha.com/varsity/module/futures-trading/

Calculations is always btwn buy & sell price
Intermediate fluctuations are to be ignored

You’ll end up with a profit of 5rs/share

Thanks but varsity mentioned if u carry forward ,new day u buy at opening price if u r carry forwarding your contract.

So that’s why i was confused.cuz by varsity analogy it seems I make loss.

Let’s say U buy a lot on the 1st for 100rs
On 2nd it opens at 101 and closes at 105
Then 4rs/share is immediately added to ur acc, (diiff btwn hold price which is purchase price adjusted against closing price on 1st & closing price on 2nd)
In equity u have to wait until actual exit from position for realization of p/l
But not in futures

Now on 3rd it opens at 105, and closes at 95, then 10rs per lot deducted from ur acc
Now on 4th let’s say u sell at 108, then a total of 13ra/share is added to ur acc (diff btwn 95 & 108)

This is what it means

this continues until you exit the position completely

1 Like

Thanks a lot.
O wow I didn’t thought it was more risky than equity.1 big jump in wrong direction is game over.

That’s the case everywhere
Equity or fut or options

Only stuff like govt bonds might offer absolute stability

Plan properly and no reason to. Fear

There are many many profitable traders out there
Just that they don’t publicly announce their profitability