What is Nifty Futures?
Nifty is a portfolio of 50 stocks which make up an index value which in its full form is called S&P CNX Nifty. The present level of the Nifty is fluctuating around the 5000 mark. The Nifty is traded on the National Stock Exchange (NSE) of India. It is jointly owned by CRISIL and NSE through IISL (India Index Services and Products Ltd.)
The Nifty index reflects 23 sectors of the economy. The Nifty tracks the movements of 50 shares of prominent Indian companies
A big aspect of understanding 'what is Nifty futures' is that the National Stock Exchange is the intermediary in this contract. This is enforced through margin money kept with the NSE on behalf of both the buyer and the seller. Daily fluctuations make a profit for one party and a loss for the other party. The difference is credited to the account of the party making the profit. In this way the accounts are maintained in a regular way till the delivery date.
It is truly difficult to learn 'what is Nifty futures' without having some hands on practical experience. Buying, selling, margin money, delivery, long and short are part of the terminology used in these futures trades.
Trading the Nifty:
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