Things to know when trading in Bank Nifty Futures

 

Nifty Future is a Futures Contract where the underlying asset is the Nifty50 index. The Nifty50 Index tracks the performance of the 50 largest and most liquid companies listed on the National Stock Exchange of India. Because it is a derived instrument, Bank Nifty Futures is a contract between you and the broker. The contract gets traded on the NSE. The contract expires on the last Thursday of every month, and you need to square off your position before then.

The trading hours for Nifty Future Investing are from 9:00 AM to 5:00 PM. The tick size for Nifty Future is 0.50 paise. Nifty Future enables the traders to take a long or short position in the underlying index with a reduced margin than taking a direct position in the underlying index. This makes it an attractive instrument for traders who want to consider the Indian Stock Market but do not want to tieupa large amount of capital in buying the underlying stocks.

Since Nifty Future is aDerivative instrument, it is essential to know about various concepts such as open interest, price discovery, basis, etc., before trading in Futures Investment.When it comes to Bank Nifty Futures, it is the most popular option. Here are a few things to remember if you are considering trading in them:

- Futures Contracts are agreements to buy or sell an asset at a future date. When you trade Futures, you speculate on the future price movements of the underlying asset.

- Unlike other investments, Futures Contracts are highly leveraged. This means you can control a large sum of the underlying asset with relatively small capital. However, it also means that your losses get magnified if the market moves against you.

- Because Futures Contracts are traded on margin, you need to have enough money in your account to cover the margin requirements. These requirements vary between contracts, so it isessential to check before you trade.

- Finally, Futures Contracts are subject to daily settlement. Any gains or losses are settled each day, and your account gets credited or debited accordingly.

There are many different strategies you can use when investing in Nifty Futures. So, you mustresearch and figure out which makes the most sense for you.Keep these things in mind, and you will gain all success in Futures Trading.

ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.