Things to know Before Trading in Nifty Futures
Nifty futures trading is a common representation of trading the market as a whole, as Nifty is quite representative of the market in particular and the economy in general. Nifty futures are essentially regarded as the futures contracts on the Nifty. The minimum lot size of the Nifty is 75 units, making the lot value just over 7.50 lakhs. You must learn about the Nifty future strategies before trading. Let's understand a few points to remember that will help us trade intraday and long-term Nifty futures. Check the futures spread over the spot Futures are normally traded at a margin over the spot price. Under normal conditions, the monthly spread over the cash price is determined by the current cost of funds. It is also called a carry cost, and futures typically trade at a premium. Do not buy Nifty futures when it has a very high premium against the spot index, as it could be a case of overpricing and optimism. Also, do not jump in to buy when Nifty futures are discounted, as it cou...