Miscellaneous

Can Nifty futures be traded intraday?

Can Nifty futures be traded intraday?

Nifty futures are leveraged like all futures positions. When you buy one lot of Nifty in the near month, your margin is around 10\% for normal trades and 5\% for MIS (intraday) trades. That means you get 10 times leveraged in a normal trade and 20 times leverage in intraday trades. This works both ways.

Can you take delivery of Nifty futures?

Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date. Nifty options are of two types —call and put options. A seller of the options is obliged to give or take delivery of Nifty from the buyers.

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Are Nifty futures liquid?

9.1 – Basics of the Index Futures The ‘Nifty Futures’ is the most widely traded futures instrument, thus making it the most liquid contract in the Indian derivative markets. As we know the futures instrument is a derivative contract that derives its value from an underlying asset.

How is nifty future value calculated?

Nifty bank nifty margin and profit loss calculation If any traders take long positions in nifty future at 9800 with the stop loss of 9750 and for target 9900. Then its nifty future margin will be calculated like this: Nifty current price 9800 * current lot size 75 = 7, 35, 000/- is total value of 1 future contract.

Can I sell futures without buying?

Unlike stocks, you can sell futures without making a previous purchase. However, you cannot realize a profit in futures trading until you “flatten” your position – placing an order for the same quantity on the opposite side of the market.

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What happens when Nifty future expires?

This particular contract expires on July 27, being the last Thursday of the contract series. If you have left India for a holiday and are not in a position to sell the future till the day of expiry, the exchange will settle your contract at the closing price of the Nifty prevailing on the expiry day.

Can I short sell Nifty futures?

The big advantage of selling in futures is that you can not only sell stocks but you can also sell indices like the Nifty and Bank Nifty. So you can take a view on a sector or the market as a whole life and play this trend through indices. In short selling in the spot market that facility is not available.

How many futures stocks are there in NSE?

Below are the list of 174 future stocks listed in NSE.

Why futures price is less than spot?

For example, when futures contracts have lower prices than the spot price, traders will sell short the asset at its spot price and buy the futures contracts for a profit. For traders and investors, lower futures prices or backwardation is a signal that the current price is too high.