Trading in Nifty?

Question

can some one tell me how to execute a nifty futures trade and how to calculate profit and how much i need to pay as margin.

Answer 1

While making a contract you have to pay 20% margin apart from this you must be ready for mark to mark margin. At the close of every trading day mark to mark margin is calculated on the basis of the difference of closing price and your contract prise, if the difference is favourable your a/c will be credited otherwise you have to pay by the next morning. On the last thursday of every month your contract will be settled if not settled earlier.

Answer 2

There are "possible" two ways you can trade NIFTY. That is buying/selling "Nifty" Futures Derivative or buying/selling Mini "Nifty" Futures Derivative.

The profit is same as like buying or selling shares if you are squaring off the same day.

Nifty(as on 6June2008)

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Lot Size: 50 Nifty

Initial Margin to buy/sell: 12.0

Minimum margin to hold: 9.0

Mini Nifty (need less money only as the lost size is 20)

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Lot Size: 20 Nifty

Initial Margin to buy/sell: 12.0

Minimum margin to hold: 9.0

Thank you for reading.

Answer 3

you need 10% of contract value as margin to trade in nifty future , ie if you buy/sell nifty future at 5000 ( lot size 50 * 5000 ) 25000 Rs will needed as intial margin. You have pay mark to market margin additional if contract value goes down from your purchase price on closing basis. ie you buy june nifty future at 5000 ( 5000 * 50 ) and after that nifty closed on 4900 .[ ( 5000-4900) * 50 ] 5000 as M TO M and nifty falls further you have to pay every time the M TO M and if market recovers the M TO M paid is credited back to your account on daily basis on closing price. For Minifty the lot size is 20 here you need less money to trade.  last thursday is expiry day for current month future. calculation of profit or loss  is also simple you buy nifty future at 5000 and sold it at 5100 profit = [ (5100 - 5000) * lot size ] . here you can trade both side means you can sell first and buy later. profit [ (sell price - buy price ) * lot size ]. Intial margin are increased if market get volatile ie it is 13 % in jan now it is 10% . If you have stocks in your account the intial margins is adjusted against the stocks. If your portfolio value is 100000 then generally you get margin of 50000. You have pay m to m cash on daily basis if market is against you position.