How long can I hold Nifty futures?

How long can I hold Nifty futures?

The underlying index is BANK NIFTY. BANKNIFTY futures contracts have a maximum of 3-month trading cycle – the near month (one), the next month (two) and the far month (three). A new contract is introduced on the trading day following the expiry of the near month contract.

Is it good to buy Nifty futures?

Nifty futures are essentially futures contracts on the Nifty. The minimum lot size of the Nifty is 75 units which makes the lot value at a little over Rs. 7.50 lakhs. Don’t buy Nifty futures when it is at a steep premium to the spot index as it could be a case of overpricing and too much optimism.

What do you means by buying 10 lots of nifty future?

Treat Your Position as Leveraged: As all futures positions, Nifty futures positions are leveraged. You get a 10\% margin for normal trades, and 5\% margin for intraday trades when you buy a Nifty lot in the near month. Leverage means that both profits and losses are multiplied.

Can we rollover futures contract?

Traders will roll over futures contracts that are about to expire to a longer-dated contract in order to maintain the same position following expiry. The roll involves selling the front-month contract already held to buy a similar contract but with longer time to maturity. Depending whether the futures is cash vs.

What are Nifty Futures and options?

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.

Do nifty and Bank NIFTY go up and down together?

Normally and most of the times, Nifty and BNF tend to go up and down together. Except for a few instances when they go in opposite directions which may be mainly due to individual stock performance. Now regarding your question, I’m assuming that equal lots are being bought for Nifty Futures as well as Banknifty futures.

What is a nifty put?

Similarly, a Nifty put gives its buyer the right to sell the index. A seller of the options is obliged to give or take delivery of Nifty from the buyers.

How to buy a 10700 call option on NIFTY?

As opposed to buying a futures contract, A can buy a 10700 call option on Nifty by paying a premium of Rs 200 (closing price on Friday) per share. If Nifty jumps by 100 points at expiry to 10800 the option value will rise by around Rs 100. The seller of the option has to in this case fork out the money.