Aditya Birla Money Limited Copyright Aditya Birla Nuvo Limited 2008 Futures 1 “Futures” is essentially a  Standard Contract  Entered into between Two Parties – A Buyer and a Seller  On a Recognised Stock Exchange  Through an Authorised Stock Broker  For the Price, Quantity & Quality, decided as on Current Date  But, Settlement to take place on or before a defined Future Date Next

Aditya Birla Money Limited Copyright Aditya Birla Nuvo Limited NextPrevious Futures  Futures expires on the Last Thursday of the Month  If the last Thursday is a holiday, it will expire on the previous working day  On Expiry, all Contracts will be compulsory Cash Settled  Settlement Price = (Contracted Price – Closing Price) X Number of Units  Number of Units is referred to as, “Lot Size”, which will vary from Scrip to Scrip and Index to Index

Aditya Birla Money Limited Copyright Aditya Birla Nuvo Limited NextPrevious Futures  At any point of time, there will be Three Futures Contracts for an underlying  For the Month  Near Month  Far Month  The Day, next to the Date of expiry of For the Month Contract, a new Contract will be introduced and thus, on a rolling basis, at any point of time, there will be Three Futures Contracts for the Underlying

Aditya Birla Money Limited Copyright Aditya Birla Nuvo Limited NextPrevious Futures  Initial Margin will be paid by both the Buyer and Seller at the time of entering into a Futures Contract  This will be retained by the Exchange till the transactions are finally squared up  Mark to Market Margins are payable, calculated based on the Closing price, at the end of each Trading Day  These are collected from the losers and paid to the winners, on a daily basis

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