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| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
An Equity futures contract traded on an organized exchange. In this contract parties commit to buy or sell a specified amount of an individual equity or a basket of equities or an equity index at an agreed contract price on a specified date.
Equity futures are of two types :-
Index Future :- This type of equity future has a index as its underlying. Like Dow Jones future. It sattles in cash sattlement only on a specified date.
Stock Future :- This kind of future contract has a stock as its underlying and stock price defines the value of a future contract. generally sattled in cash or stock.



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