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Saturday, April 17, 2010

What is Nifty Futures?

Nifty Futures is a financial instrument in which futures contracts are done on the basis of S&P Nifty index which is the benchmark of NSE. Nifty futures are a instrument type of market in which trading is done on the basis of the underlying index S&P CNX NIFTY.

It is a forward contract that is a derivative type of instrument in which buyer and seller are agreed to transact set of financial instrument/Physical commodities for futures at a particular price i.e if you buy a future contract that means you promise to buy something that seller has not yet produced at a particular price and a specific time.

Nifty is index of 50 Blue chip companies consisting in NSE(National Stock Exchange) and represents the performance of these companies,Nifty covers more than 70% of traded values of stocks in NSE and also it covers around 60% of total market