How Indian Stock Market Works?Ī stock market can be defines as a place where commodities, equities and other assets are bought and sold. 40,000 to purchase one lot of future contract in derivative market. So finally, if you want to buy Nifty futures as per the given scenario then you will require Rs.

Let’s calculate your contractual value of your Nifty future:įormula to calculate future contract value:įuture Contract Value = Future Price * Lot Sizeįormula to calculate the buying value of future contract:įutures Buying Value = Future Contract Value * Margin Required 8,000 with the lot size of 50 and Margin required to buy the Nifty future contract is 10%. Let us take an example to understand it better:Įxample of Nifty Futures: Suppose you intend to purchase NIFTY future at value Rs. Basic difference between stock market and futures is that, you pay actual cost to buy stocks in stock market whereas you pay only margin amount to trade in future market. You can choose contracts either of one month or of three months contracts. Each and every contract has an expiration date of it.

Contract value is defined as the final negotiated or proposed price of a contract. Nifty future is a part of Future Contracts and Future Contracts are the part of the derivative products. There are agencies that provide their intra-day calling services to inform the traders about the current fluctuations of the market and help with stock buying and selling activities in Nifty, after a subscription.

India Index Services and Products (IISL) owns and manages the same. It’s the most frequently traded futures tool, and in the Indian derivative markets it has become the most liquid contract.įor Indian equity market, NIFTY 50 index is the benchmark stock market index of National Stock Exchange of India, Nifty is a wholly owned subsidiary of the National Stock Exchange Strategic Investment Corporation Limited. Nifty futures has a very special place in the Indian derivative markets. 1 Basics of Futures Trading for Beginners.

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