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Procedure And Profit In Nifty Future Trading
Nifty is the Blue chip index of National Stock Exchange. Top 50 companies having higher Market capitalization from various sectors like Banking, Capital goods, IT, Oil, Infra etc. listed on NSE. An index future is a derivative, very similar to stock future, whose value is dependent on the value of the underlying. By trading in index futures, an investor is buying and selling the basket of stocks comprising the index.
In India, index futures trading started in 2000 on National stock exchange. Nifty futures are index future where the underlying is CNX Nifty 50 index. Like stock future index futures are traded in terms of lot size. For Nifty future contracts, the permitted lot size is 75. It has a 3 month trading cycle- the near month, next month and far month. Here expiry is the last Thursday of every month. After expiry of near month, one future contract is added on the far month. Investor can buy or sell nifty future by having a margin amount in their account. The margin is 10-12% of contract value. If Nifty index is at 8000 and lot size is 75 then contract value is Rs600000/- and margin required to trade in nifty future ...
... is Rs60000/-.
WHY trade in Nifty Future?
Nifty future trading is easy as compared to stock future as it is just one future contract to study trend and trade. It is also used to hedge against the risk of stock exposure.
HOW?
Nifty is the index of Indian stock market and it changes direction according to financial news, financial events, and political decision etc. To trade in Nifty future one should have knowledge of current financial development in India so that trend of Nifty can be predicted. To update with financial events one can use various financial website which are giving free Nifty Future Trading Tips and Free Intraday Trading Tips.From this type of website you can know the trend of Nifty, Nifty support and resistance, nifty buy sell recommendations and upcoming events, which can affect nifty trend and accordingly take position in buy or sell side.
Nifty trader use candle stick pattern to know the trend and what traders are doing. It is the oldest technical pattern still used.
Another method which is most important is using technical chart.It shows the Nifty position and direction. If there is no time to analyze then investor can get the direction of nifty for each trading day, buy sell recommendations and nifty support and resistance in free Nifty Future Trading Tipsand Free Intraday Trading Tips.
Here there are 3 sections. 1st section is called candlestick pattern. It gives idea about bullish or bearish sentiment of Nifty. 2nd section gives idea about buying and selling volume on that particular day. 3rd section gives idea about over bought and over sold region and direction of nifty.
While trading in nifty, know all financial news and use technical chart to know the trend and accordingly take position in buy or short side.
Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in Nifty Future Trading Tips, Nifty Trend for Today, Equity, Derivatives and Commodity market. He also made a guest appearance in various workshops which were conducted on stock market awareness.
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