Suggest a Topic Analyst Badge
Add a Reply

Nifty Futures

Nifty futures are one of the derivatives which are derived from Nifty index. As said in our previous article, these have some unique features which are extremely helpful for professional as well day traders. Nifty future, as it is the index of national stock exchange, the volatility ratio is highly useful to trade. Also, volume by contracts and volume by trades are undoubtedly high compared to other stock futures. This reduces the risk of manipulation in stock market. The high exposure, hedging feature, buyer-seller ratio and liquidity made this type of trade to stand unique from co stocks. Point to remember by long term traders is that, as this kind of trading deals with expiry, its not advisable to trade in futures though roll over feature allows to do so. Best way is to trade in cash to minimise the risk for long term. Professional short term traders could go with rolling over the expiry. Lastly, nifty future trading gives a stable and predictable view when compared with nifty options trading

Which kind of trades are suitable to trade in this segment ?

Day trading for Nifty Futures
Buy Today Sell Tomorrow (BTST)
Sell Today Buy Tomorrow (STBT)
Very short term trades of Nifty Futures
Speculation trading

Reasons:

Better volumes when compared with stocks
Better liquidity
Less span margin
Easy break even point
Makes more predictable

Posted By: Vikas Sharma                 Posted on: 2016-06-24 16:21:58                 Updated on: 2016-06-24 16:21:58