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There are a lot many things that you need to consider while trading in Nifty or in the Nifty future. But before knowing anything you need to understand what is Nifty and nifty future so that you can invest in them smartly and effortlessly.
Nifty is also known as the National stock exchange fifty. Nifty is the benchmark index of the NSE. This is composed of the top companies across various industries and sectors that are listed in the NSE.
Nifty future has a very special place in the Indian derivatives world. These are some of the most traded futures instruments, thus it has become the most liquid contract in the Indian derivatives market.
The main reason why Nifty is considered to be a good indicator of the performance of the stock market is due to the fact that nifty is used to cover the 14 different sectors across the companies. Since Nifty is an index you cannot directly purchase like a stock of the company. There are different ways of trading in the nifty are:
Here are some of the Nifty future tips or you can say strategies that you need to consider while trading in the Nifty futures is as follows:
Intraday trading starts when the stock market hours opens and ends on the same day when the stock market gets closed. This provides the facility of liquidity and volatility in trading in the stock. Steps for trading in the nifty intraday are as follows:
How to deal with nifty futures?
Nifty futures are used to derive their value from the nifty index. If the value of the nifty index increases, then the value of the nifty futures will also increase and vice versa. So you have to keep a check on the nifty index while trading in the nifty future so that you can avoid risk and loss.
Here you go with the formulas that are used for trading in the nifty futures which will also help you know the profits you are going to earn and avoid the loss.
Future pricing formula
Futures Price = Spot price *(1+ rf )– d
rf- Risk-free rate
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