exchange clearing and settlement mechanism. Futures could be used for trading or hedging. There are futures contracts for trading/speculating on the price of indices like Nifty and Bank Nifty; while futures contracts are available for different Indian equities too. It is a speculative bet on the price of the underlying asset.
The buyer of a futures contract stands to benefit (profit) when the prices of the underlying asset rise and the seller of a futures contract benefit during price drop.
A buyer of the futures contract is said to be bullish on the underlying, while the seller is assumed to be bearish on the underlying. But the core reason that encourages traders to participate in futures is leverage.