Can we buy and sell Bank Nifty?
What is Bank Nifty? An index comprising 12 state-owned and private sector banks. Like the Nifty, those bullish on banks can buy Bank Nifty futures comprising 30 shares, or buy a call option on Bank Nifty. Bears can similarly short or sell Bank Nifty futures or buy a put option on the index.
Can we sell Nifty futures?
Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date. Nifty options are of two types —call and put options.
How long can I hold Nifty futures?
The underlying index is BANK NIFTY. BANKNIFTY futures contracts have a maximum of 3-month trading cycle – the near month (one), the next month (two) and the far month (three). A new contract is introduced on the trading day following the expiry of the near month contract.
Can I sell futures without buying?
Unlike stocks, you can sell futures without making a previous purchase. However, you cannot realize a profit in futures trading until you “flatten” your position – placing an order for the same quantity on the opposite side of the market.
How much money is required for future trading?
Based on the 1\% rule, the minimum account balance should, therefore, be at least $5,000 and preferably more. If risking a larger amount on each trade, or taking more than one contract, then the account size must be larger to accommodate. To trade two contracts with this strategy, the recommended balance is $10,000.
What are Nifty Futures and options?
Nifty futures are a contract that gives its buyer or seller the right to buy or sell the Nifty 50 index at a preset price for delivery at a future date. Nifty options are of two types —call and put options.
Should I buy or sell Bank NIFTY and nifty future?
You should buy Nifty future if your view is bullish on the market and you should sell Bank nifty if your view is Bearish on Banknifty. If you are doing both the trades togather then you are trying to Isolate the banking sector i.e. you think market will go up but banking stocks may drag the performance.
Why should you buy nifty and BNF futures together?
The most likely answer is for hedging. Assuming that you bought 1 lot of Nifty and sold 1 lot of BNF futures on Friday (1st March 2019) Normally and most of the times, Nifty and BNF tend to go up and down together. Except for a few instances when they go in opposite directions which may be mainly due to individual stock performance.
How does margin trading work in NIFTY trading?
Suppose trader A feels Nifty will rise from 10700, she can buy one lot (75 shares) of Nifty futures by putting a margin at a fraction of the contract cost . Her counterparty trader B sells her Nifty at that level.