Trading derivatives like future have high risk and reward . Because futures are highly leveraged instruments we have to take extra precautionary measures comparing to an equity. In regarding this what kind of risk and money management we should follow when we are trading highly leveraged instruments especially futures (eg stop loss, number of scrips in portfolio etc).
Any kind of idea is welcomed (especially futures)
While futures can be used to effectively hedge other investment positions, they can also be used for speculation. Doing so carries the potential for large rewards due to leverage but also carries commensurately outsized risks. Some pointers to keep in mind while trading in futures:
1) Spread your risk over a range of different markets, for example, stock index, currency, and several commodities like grain, livestock, energy, metals, industrials, softs.
2) Always use Stop Loss Orders to protect capital whenever you make a trade, and move them to protect profits.
3) Never let a profit run into a loss. As soon as a trade becomes profitable, move your stop loss to lock in profits.
4) "When in doubt, get out." If you are unsure of the market position it is safest to exit with a guaranteed profit or small loss.
5) Create a surplus account. When you have made some profits place them aside to use only in an emergency.