Still Have Doubts? Talk to Us
If your question wasn’t answered above, we’re here for you. Reach out to our team for assistance.
What is the difference between futures and cash markets?
Futures Market: A futures market is where only futures contracts are bought and sold at a predefined price and date in the future. No delivery takes place, and contracts settle on the expiration date (maximum of three months). You do not become a shareholder when trading in futures. The margin money is required to initiate a future contract, and a minimum lot size is specified. For example, NIFTY futures has a lot size of 75. You are not entitled to dividends in a futures contract.
Cash Market: A cash market is a marketplace where securities are bought and sold for immediate payment and settlement. Investors receive shares immediately in exchange for cash. Demat settlement takes place on T+2 days, and the client becomes a shareholder of the stock company. The full amount must be paid when buying shares in cash. You can buy even a single share.
Did you find it helpful?
