📊 Futures Trading Explained: Key Concepts to Know Futures trading is more than predicting whether prices will rise or fall. Understanding margin and risk management is essential. Here are the key concepts: 📈 Long vs Short: A long position benefits from rising prices; a short position benefits from falling prices. 📦 Contract Specifications: Lot size, contract size, expiry date and price tick define the contract. 💰 Initial Margin: Funds required to open a futures position. 🔄 Mark-to-Market (MTM): Daily settlement of gains and losses. ⚠️ Maintenance Margin: Minimum balance required to keep a position open. 📞 Margin Call: A demand to add funds when your margin falls below the required level. 💵 Variation Margin: Funds paid or received to cover changes in a futures position’s value. 📅 Rollover: Closing an expiring contract and opening a later-dated one. 📊 Open Interest: Number of outstanding contracts that have not been closed or settled. Key takeaway: Leverage can amplify both profits and losses. Always understand margin requirements, contract expiry and your downside risk before trading.