What is Nifty Future Trading? How to perform if?


Nifty Future Trading

Most of new trader does not know all the trading segments and the basics of trading. When this kind of person comes to market, they have faced many problems. Before taking any action in the market new traders need deep research about the market. So as we know there are two main stock exchanges available in India which is NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Top ranking companies registered with these stock exchanges, an expert trading scenario make with these companies’ analysis. By this stock exchange, we can perform trade and do transaction with these companies stocks. All the stock which is available for trading should be registered with these exchanges. There are many websites and newspapers available by which you can collect the required information and make own tips like as Nifty Tips and Stock Future Tips. These tips can play very important role in your trading, many advisory firms (Trifid Research) provide tips with 2 days free trial services.

Nifty is Index for National Stock Exchange, top 50 companies are registered with nifty index. The derivative agreement of Nifty is called Nifty Future. Nifty movement is evaluating by the performance of these 50 companies.

Exchanges permitting to all the stocks as well as in the Index also, we are taking an Example, and investors want to purchase all the main 50 nifty stocks, then it can start trading in Nifty Future. Trading with nifty is a very simple procedure here lot size of Nifty Future is 50. Everyone can purchase Nifty Future, although for buying each Nifty stock trader chooses one by one. We can analysis all top 50 shares and can track on it.

As we supposed that the size of its lot 50, assume Nifty Future on Oct month running on 5800 at present and then you have decided to buy this then its value will be

Lot Size (50) x index future value (5800) = total trade value (2, 90,000)

So you think, you need Rs. 2, 90,000.00 to perform trade for Nifty Future? But the answer is No. To perform trading of Nifty Future some extra money (margin) is required. Usually it comes around Rs. 28000 to Rs. 30000.00. Sometime stock market turns into very unstable then exchange can raise the margin money also.

So if you have the smallest amount of Rs. 30000.00, then you are able to trade in Nifty Future. It is not required that a trader should contain Nifty Future stock in their portfolio to put up for sale it. You can manage to sell it primarily and afterward you can purchase it. Although we advocate you, if you are a beginner and no proper experience of the market, then you should not trade with big capital in Nifty Future. Before starting in Nifty Future trading, you need deep analysis and expert Stock Tips related to stock. The more knowledge you have, the possibility of your failure will be very low.

 Exchange providing you some choice for trading in Nifty Future. When you assume that Nifty will be positive  next month and according to your strategies you do not have any desire to purchase Nifty Future for the current month, then here there is next month agreement is also obtainable, in this condition you can purchase that agreement. The entire trading contract finished on Last Thursday of the Month. Assume you purchased Nifty Future on 25 Nov, it denoted that you will have to determine your position on or before 25th Nov. If you will do not it, then an exchange will terminate it at the end.

Let us take one instance:-

In the present day we assume a trader purchased Nifty Future at 5800 on 15th Nov and trade out the next day at 5820, it shows you obtain 20 points and your income will be

20 (Gained points) x 50 (lot size) = Rs. 1000.00 (Profit)

In present day assume you purchased Nifty Future at 5800 on 15th Nov and sold out similar day at 5870, it shows you lost 30 points and your loss will be

30 (lost points) x 50 (lot size) = Rs. 1500.00 (Loss)

We take another case, if you sold today in Nifty Future at 5800 on 15th Nov and purchase (covered) on a same day at 5780, and then it shows you got 30 points and your income will be

20 (obtained points) x 50 (lot size) = Rs. 1000.00 (Profit)

If you shorted that means sold today in Nifty Future at 5800 on 15th Nov and purchased after 4 days at 5900, it shoes that you have lost 100 points and your loss will be

100 (lost points) x 50 (lot size) = Rs. 5000.00 (Loss)

I hope these examples are very beneficial to all the traders. The stock market is a very volatile market and there are an almost countless number of reasons that can change the stock market to movement considerably in one way or another. This can contain such things as economic statistics, geopolitical procedures and market attitude, among a numberless of another issue. In the stock market shift, whether to go positive or negative, there is a considerable variation among supply and requirement.

Leave a Reply