We also have bank nifty, which is a derivative contract that trades on National Stock Exchange. The underlying assets of the banks nifty index are its bank nifty future. The second most liquid and tradable equity index future, bank nifty is recommended.
Spreads are the difference between the price a buyer or seller will quote. Spread is a measure of how profitable a trading experience will be. Nifty futures are well-knownly traded and the difference between the bid and the ask price is greater.
It is well-diversified: Nifty fifty index is a well-diversified index. It comprises of fifty companies which belongs to different sectors.Diversification leads to effective management of risk involved in the performance of stocks. It is therefore less risky to invest there because it has a variety of companies.
Margin: You need to keep less margins. The margin amount for nifty-future is eight percent. Trading can also be done with less capital.
Options that are highly liquid: This refers to assets that can be converted into monetary value immediately. It is easy to determine trading calls by simply studying the Out Of Money and In The Money strike prices.
Hedge against stock portfolio It can be used to hedge your equity portfolio.
Far month liquidity: Far months contracts in Nifty Futures have more liquidity than stock futures. It is possible to have a positional view by purchasing far months contracts.
It’s easy to predict: You can track and predict here. Technical analysis is not allowed. This is not a place for fundamental analysis. However, global sentiments can have an impact on the nifty.
Future segment has the lowest intraday margin requirements. For intraday trading, margin for positional trading is around forty thousand. However, for nifty futurs, it is only ten thousand. Advisory companies provide best Nifty Futures tips free to traders.
Stock futures can also be a good investment. If you make good stock future tips, you will earn good profits. But there is a lot of risk involved.