---
title: "Futures | Path 13 | RupeeCase Learn"
description: "Futures in India explained: daily mark to market, basis and cost of carry, rollover, open interest and hedging with Nifty futures, from dated NSE data."
source_url: "https://www.rupeecase.com/learn/path-13/"
---

[RupeeCase Learn](/learn/)/Path 13/Beginner

# Futures

    Futures P&L and mark to market, basis and cost of carry, open interest build ups, rollover, fair value and hedging a portfolio with futures.

* **7**modules
* **58 min**of reading
* **30**question path test
* **Free**with a certificate

    [Start at 13.1](/learn/path-13/module-13-1-futures-basics-mark-to-market)See the stops

      01The line

## 7 stops, 7 live.

      One contract, two sides, settled every evening. How a futures position makes and loses money each day, why the future trades away from spot, and how a long portfolio is hedged with it.

      **0**of 7 done on this device

1. [13.1Futures explained: long, short, leverage and daily mark to marketA future is settled in cash every evening, not at the end. One lot of Nifty, followed through a real ledger8 min](/learn/path-13/module-13-1-futures-basics-mark-to-market)

2. [13.2Why futures trade above spot: basis, carry and convergenceThe premium on a future is mostly interest, less dividends, and it melts to zero at expiry. It is a schedule, not a forecast8 min](/learn/path-13/module-13-2-futures-basis-and-carry)

3. [13.3Open interest, volume and the four build up patternsOpen interest counts what stays open. Volume counts what traded. Four labels come from them, and the roll can fake an exit7 min](/learn/path-13/module-13-3-open-interest-and-build-ups)

4. [13.4Rollover: when, why and what it costsA future ends on a set date. A roll keeps the exposure alive, in two trades, and the gap between the two prices is its main cost8 min](/learn/path-13/module-13-4-futures-rollover)

5. [13.5Fair value of Nifty futures with dividendsA futures premium is interest less dividends. Solve for the dividends and you see how much of the price is a plug9 min](/learn/path-13/module-13-5-nifty-futures-fair-value)

6. [13.6Futures calendar spreads and roll yieldA roll is a calendar spread that closes one leg as it opens the next, and its price is carry for the days between expiries9 min](/learn/path-13/module-13-6-futures-calendar-spreads)

7. [13.7Hedging with futures: beta, hedge ratio and lotsLots are value times beta over one lot, and every hedge leaks through the basis, rounding, beta and the stocks themselves9 min, path test](/learn/path-13/module-13-7-hedging-with-futures)

    02Outcomes

## What you will be able to do.

* *01*Work out the daily mark to market of a futures position
* *02*Explain the basis between future and spot from the cost of carry
* *03*Read open interest and price together without guessing who traded
* *04*Size a futures hedge for a long portfolio by value and beta

    03Certificate

## Pass the path test.
Keep the proof.

1. **1**Read the modules and try each quick check (optional)A pass gives that module's own certificate
2. **2**Take the 30 question path test21 correct to pass, drawn from 105 questions
3. **3**Get the certificateWith an ID and a QR code

    [Jump to the path test](/learn/path-13/module-13-7-hedging-with-futures#pathTestSection)[About the certificates](/learn/certificates)

    04Questions

## About Path 13.

    What does Path 13, Futures, cover?How a futures position gains and loses through daily mark to market, the basis and the cost of carry, rollover, open interest with price, fair value and hedging a long portfolio with index futures.

Should I read Path 12 before Path 13?Yes. Path 12 sets out the contract specifications, margins and costs that every futures example in this path uses.

Does Path 13 give trading levels?No. The examples are dated NSE end of day files at least 30 days old. Nothing here is live, and nothing says where an index goes next.

    Explore next

## Where to go next.

* [QuestionsQuestions on futures and optionsShort answers, each with a dated chart](/learn/questions/)
* [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder)
* [Free module 6.6Derivatives, Futures and Options for the Systematic Investor8 min read](/learn/path-6/module-6-6-derivatives-futures-options)

      Community

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    [Before this pathPath 12: Derivatives Basics and RulesBeginner, 9 modules](/learn/path-12/)
    [Next pathPath 14: Options and Greeks17 modules, 149 min](/learn/path-14/)
    [Pillar guideDerivatives and Quant115 modules](/learn/derivatives)
    [F&O on RupeeCaseHedging only, in developmentProtection for a portfolio you own, by a published rule](/hedging)

  Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.