Buying futures is like buying underlying assets. The only requirement is to be able to analyze the future trend for the SET50 Index.

If you believe that the SET50 Index will rise, you can make a profit by taking a long position in the futures market. Conversely, if you believe the SET50 Index will fall you can make a profit by taking a short position in the futures market. Although you can take a short position in the futures market, it might not be possible to do so in the stock market because conditions for short-selling do not always exist.

If you own a portfolio of stocks and believe that the market has risen too sharply over the past few weeks, and if you expect the index to fall, you can use futures trading as a hedging tool. By holding a short position in the futures market even if your stock portfolio shows a loss you can profit from your positions in the futures market.

Investing in futures contracts involves money placed on margin only, and the amount invested is far less than the value of the underlying assets. If investors make profit then on a mark-to-market basis the margin will increase. Conversely, if investors make a loss on a mark-to-market basis the margin will be reduced. If the margin level is reduced to a maintenance margin then the investor will be required to add margin money (i.e. a call margin) until it reaches the level of the initial margin. Therefore, investors should monitor their margin and position closely.

SET50 Index futures contracts have a limited lifespan, so investors should take note of the maturity date.