Futures are types of derivative contracts where you have the compulsion to buy or sell the underlying asset on the expiry date at the specified price. For trading in this instrument, you have to analyze different underlying assets and you have to use various strategies such as spread trading and breakout trading.
In this article, you’ll get to know about some important features that you need to look for in a futures trading app.
Features to Look in a Futures Trading App
The futures trading app is a specifically designed app that helps F&O (futures and options) traders in executing buy or sell orders in a hassle-free way. You can select a stockbroker that is registered with SEBI and provides you the feature to open a free digital account in a few minutes.
Here are the different functionalities that you need to check out in a trading app to select the best one:
- Different Types of Futures Contracts
You can select an app that provides you the opportunity to access different types of futures such as stock futures, index futures, currency futures, and commodity futures. You can simply check out all the futures in one place and analyze their traded volume, OI change, etc.
- Volume Weighted Average Price (VWAP) Analysis
This is a technical indicator that can help you identify trends and you can analyze potential entry or exit points. You can select a futures trading app that offers the service of real-time VWAP analysis of futures contracts. You can analyze the VWAP indicator for 1 minute, 5 minutes, 30 minutes or 1 hour.
- Mega Orders
You can see the functionality of basket order in an app where you can add all your orders in one place and execute all of them in one go. This will save time in executing each order individually and you can create different trading strategies.
- Break Orders
There is one more functionality that you can look at while selecting an app called Iceberg Order. This will help you break the large orders and you can quickly execute each order. This will reduce the impact cost and you can avoid slippage as well.
- Target Price and Stop Loss
The app can provide the feature to set up the target price and stop loss in futures named Forever Order with OCO (One Cancels Other). This means that when the stock price touches any of the two trigger prices first, the other trigger price stands canceled.
In target price, the selected futures are sold or bought when they reach a certain point and in stop loss, they are sold when they fall to a specified point.
Conclusion
You can select the best futures trading app by analyzing its different features such as the availability of different futures contracts, live VWAP analysis, basket orders, iceberg orders, and functionality to set up the target price and stop loss.
If you are looking for an app that provides all these features, then you can download the Dhan Options Trading App and you can open the account in a few minutes.
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