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Nifty Cash trading

Nifty, as every one knows its name is derived as follows, ‘N‘ from Nse and ‘IFTY‘ from fifty combining which we get a word called NIFTY or Nifty 50. Nifty is not only the index of National stock exchange but also a trading scrip. As other stocks, traders can also trade in Nifty in all segments – cash/equity, nifty futures and nifty options. When trading in cash or equity, it requires a high margin when compared to future trading or options trading.

Let us assume nifty is trading at 5000 index.The margin required to trade in cash would be around Rs.5000 for 1 share. Most important thing we would like to bring to your notice is that, there is no limitaion regarding the number of shares to buy or sell when trading in cash. Its totally the traders wish on the number of shares he trade. Like futures trading or options trading there is also no time limit too in nifty equity trading. Once bought shares can be hold for any number of years.

Summary of article, Nifty cash trading:

Nifty cash trading allows traders to trade in any number of shares
Nifty equity trading does not have any time line for squaring off
This type of trading allows long ans short positions for intraday
Nifty cash trading allows only long positions for holding more than 1 trading day
As there is no exposure, margin required to buy Nifty share is high compared to nifty options or nifty futures
Nifty trading is available only in National stock exchange as it is the index of NSE.

Posted By: Pankaj                 Posted on: 2016-06-15 15:52:48                 Updated on: 2016-06-18 16:59:49