Stock futures trading involves various strategies to capitalise on price movements, hedge risks, and leverage market opportunities. Here are the most common approaches:

Trend Following – Traders buy futures in an uptrend or sell short in a downtrend, using technical indicators like moving averages or MACD to confirm trends.

Spread Trading – Involves taking opposing positions in related futures contracts (e.g., calendar spreads between different expiration months or inter-market spreads between correlated assets) to profit from price differentials.

Hedging – Investors use futures to protect their stock portfolios from adverse price movements. For example, shorting index futures can offset potential losses in a declining market.

Arbitrage – Traders exploit price discrepancies between futures and the underlying stock (or between different futures contracts) to lock in risk-free profits.

Scalping – A high-frequency strategy where traders profit from small price movements, entering and exiting positions within minutes or seconds.

Breakout Trading – Futures traders buy when prices breach resistance or sell when support breaks, anticipating strong momentum.

Mean Reversion – Based on the idea that prices eventually return to their average, traders buy oversold futures or sell overbought ones.

Successful futures trading requires risk management, discipline, and a clear strategy tailored to market conditions. Combining technical and fundamental analysis enhances decision-making.