What is Nifty ?
a. Nifty (S&P CNX Nifty) is the Index of Indian share market on NSE (National Stock exchange) like Sensex on BSE (Bombay Stock Exchange)
b. Trading is done on Nifty contract which is also called as Nifty future derivative. Nifty derivative movement is based on Nifty index. In stock market language it is called as “underlying of Nifty future contract is S&P CNX NIFTY Index.”
c. Nifty Lot Size - Nifty derivative consist of a lot of 50 quantities of Nifty. So if you want to buy Nifty contract then you have to buy at least one lot. The trading in Nifty contract is done in lots.
d. Nifty Expiry - The Nifty derivative expires every last Thursday of the month. In India we have three month future derivatives for trading. For example - In the month of October, we have October, November and December month Nifty derivative for trading. Current month derivative will have more liquidity (more volumes) as compared to other two months derivatives. A new contract is introduced on the trading day following the expiry of the current month contract. If the last Thursday is a holiday then contracts expire on the previous trading day.
2. Advantages of trading in Nifty
a) Trader get margin to trade on Nifty.
For example - Nifty derivative consist of 50 quantity of Nifty index so the cost of one lot will become Rs 2,63,000 [50 qty of Nifty multiple by the closing price of Nifty index, which is 5260 current closing (15 Jan 2010)].
Please note - You need to have 15% amount of the entire cost to trade in Nifty future contract. Approximately it comes to Rs 35,000.
b) Small traders can even buy Mini lot of Nifty contract which consist of 20 quantities of Nifty. To buy one lot of Nifty mini lot, you need approximately Rs 11,000.
c) You can do day trading (Intraday trading) as well as carry forward (hold your nifty positions) till the expiry period of your contract (minimum one month expiry and maximum three month expiry)
d) You can trade both sides of the Nifty means if you feel market is going up then you can buy Nifty contract and if you feel market is going to fall then you can short sell Nifty and later buy it to cover up your positions.
e) Very Low brokerage rates. Low brokerage rates increases your profit percentage. We are offering 0.05% for buying and 0.05% for selling. If you are interested to open the Demat account with us then please Contact us
f) High liquidity - Very high volumes are traded in Nifty future contract which will make the trader to square off at any time and at any price. Based on your trading position your account will get adjusted on daily basis as per the closing price of Nifty derivative contract.
If you do not have balance in your trading account then very next day your position will be squared off by your broker. Some brokers provide some extra days to transfer money in your trading account.
f. If you buy and sell on a same day then the profit and loss will be adjusted in your trading account accordingly.
g. Trader has to square off the positions before or on expiry. If you do not square off then the contract expires on the expiry date and the money gets adjusted in your account.
3. Risk Involved in Nifty trading
Trading in Nifty future is a risky tool, heavy loss can occur if we do not follow strict stop loss strategy
Trading involves big risk either you trade in Nifty future or in any other future contract or in stocks. Trading requires lot of experience and market knowledge. Investing and trading are two different factors in share market. Investing is not as risky as trading.
4.Nifty Intraday Trading Strategies
We advice to take 15 to 40 points profit after breaking the levels.
1. If you are low risk trader then take 15 to 20 points profit.
2. If you are Medium risk trader then take 25 to 30 points profit
3. If you are High risk trader then take 30 to 40 points profit.
SKY Wealth Management
Contact us at:
O3862-235143/9206042390
info@skywealth.in/skywealth@live.com
a. Nifty (S&P CNX Nifty) is the Index of Indian share market on NSE (National Stock exchange) like Sensex on BSE (Bombay Stock Exchange)
b. Trading is done on Nifty contract which is also called as Nifty future derivative. Nifty derivative movement is based on Nifty index. In stock market language it is called as “underlying of Nifty future contract is S&P CNX NIFTY Index.”
c. Nifty Lot Size - Nifty derivative consist of a lot of 50 quantities of Nifty. So if you want to buy Nifty contract then you have to buy at least one lot. The trading in Nifty contract is done in lots.
d. Nifty Expiry - The Nifty derivative expires every last Thursday of the month. In India we have three month future derivatives for trading. For example - In the month of October, we have October, November and December month Nifty derivative for trading. Current month derivative will have more liquidity (more volumes) as compared to other two months derivatives. A new contract is introduced on the trading day following the expiry of the current month contract. If the last Thursday is a holiday then contracts expire on the previous trading day.
2. Advantages of trading in Nifty
a) Trader get margin to trade on Nifty.
For example - Nifty derivative consist of 50 quantity of Nifty index so the cost of one lot will become Rs 2,63,000 [50 qty of Nifty multiple by the closing price of Nifty index, which is 5260 current closing (15 Jan 2010)].
Please note - You need to have 15% amount of the entire cost to trade in Nifty future contract. Approximately it comes to Rs 35,000.
b) Small traders can even buy Mini lot of Nifty contract which consist of 20 quantities of Nifty. To buy one lot of Nifty mini lot, you need approximately Rs 11,000.
c) You can do day trading (Intraday trading) as well as carry forward (hold your nifty positions) till the expiry period of your contract (minimum one month expiry and maximum three month expiry)
d) You can trade both sides of the Nifty means if you feel market is going up then you can buy Nifty contract and if you feel market is going to fall then you can short sell Nifty and later buy it to cover up your positions.
e) Very Low brokerage rates. Low brokerage rates increases your profit percentage. We are offering 0.05% for buying and 0.05% for selling. If you are interested to open the Demat account with us then please Contact us
f) High liquidity - Very high volumes are traded in Nifty future contract which will make the trader to square off at any time and at any price. Based on your trading position your account will get adjusted on daily basis as per the closing price of Nifty derivative contract.
If you do not have balance in your trading account then very next day your position will be squared off by your broker. Some brokers provide some extra days to transfer money in your trading account.
f. If you buy and sell on a same day then the profit and loss will be adjusted in your trading account accordingly.
g. Trader has to square off the positions before or on expiry. If you do not square off then the contract expires on the expiry date and the money gets adjusted in your account.
3. Risk Involved in Nifty trading
Trading in Nifty future is a risky tool, heavy loss can occur if we do not follow strict stop loss strategy
Trading involves big risk either you trade in Nifty future or in any other future contract or in stocks. Trading requires lot of experience and market knowledge. Investing and trading are two different factors in share market. Investing is not as risky as trading.
4.Nifty Intraday Trading Strategies
We advice to take 15 to 40 points profit after breaking the levels.
1. If you are low risk trader then take 15 to 20 points profit.
2. If you are Medium risk trader then take 25 to 30 points profit
3. If you are High risk trader then take 30 to 40 points profit.
SKY Wealth Management
Contact us at:
O3862-235143/9206042390
info@skywealth.in/skywealth@live.com
