Monday, December 2, 2013

Basic knowledge of nifty future

Nifty Future is a contract / agreement between two parties to buy or sell an underlying asset at some point in the future date at a price agreed . These futures contracts are exchange-traded instruments . Futures contract may be any underlying asset and the rate is pre decided . If we talk about Nifty future as a future contract is a financial instrument in which futures contracts are made on the sly core index, which is a benchmark of the National Stock Exchange .

Owl NSE is an index of 50 blue chip companies of the National Stock Exchange , it shows the performance of these 50 companies only. Owl covers about 60% of the total market capitalization. 50 is the lot size of nifty future. If someone wants to trade in futures contracts clever then he can only next maturity of three months . Nifty future has expired and is set on the last Thursday of each month and if the last Thursday is a holiday , then the futures contract expired on the last trading day of that particular month .

contract can be set in 2 ways , one is brand on the market (MTM) that happens every day , and the second is a final settlement which happens on the last Thursday of each month. Mark to market is when asset values ​​are determined based on market prices at the end of each day. The result for the same are calculated from the difference between the trade price and the settlement price of the day for contracts executed during the day, the purchase price and the selling price for contracts executed during the day.

Sometimes nifty futures contract can be negotiated at a premium or discount , depending on market conditions and sentiments of astute traders trading future. If the exercise price is above the spot price of the owl then said to be premium and vice versa - if the strike price is below the spot price of an owl then it is said to be at a discount.

With Nifty futures, there is another form of derivative contract that is listed on Indian stock market and it's nice options. Nifty future and nifty option , both are derivatives contracts traded in NSE and both of these contracts expire on the last Thursday of each month. Nifty future is traded in lots of 50 and its multiples. And the future there another contract with her and it is the futures contract Mini owl owl , the only difference between the owl and owl future mini future is that the batch size , owl future careers in lot 50 while mini nifty future is trading 20.80% area of ​​traders who negotiates crafty, crafts in the future rather than the future mini owl owl .

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