Nifty 50 Futures Introduction:
The Nifty 50 is the National Stock Exchange (NSE) index made up of the 50 largest and most important Indian companies. It is one of the most important stock indices in India and is widely followed by investors both in India and abroad.
This brief guide will look at what Nifty 50 Futures is, how it is traded, and what investors need to know before trading this contract.
1. What Is the Nifty 50 Futures?
2. How Is the Nifty 50 Futures Traded?
3. What Do Investors Need to Know Before Trading the Nifty 50 Futures?
1. What is the Nifty 50 Futures?
The Nifty 50 Futures is a contract that allows investors to trade and invest in the Nifty 50 index.
The contract is traded on the National Stock Exchange of India (NSE) and is one of India’s most popular futures contracts.
2. How is the Nifty 50 Futures traded?
The Nifty 50 Futures is traded on the National Stock Exchange of India (NSE).
The contract is denominated in Indian rupees (INR) and is sold in lot sizes of 50 index points (i.e. each contract is worth 50x the Nifty 50 index).
The Nifty 50 Futures is a cash-settled contract, which means that no physical delivery of the underlying index takes place.
Instead, investors settle their positions in cash on the settlement date.
3. What do investors need to know before trading the Nifty 50 Futures?
Before trading the Nifty 50 Futures, investors need to be aware of a few key things:
- The Nifty 50 Futures is a contract that can be traded on brokerage terminals or called to the brokerages and traded.
- The Nifty 50 live futures offer good trading opportunities if you have good knowledge of technical analysis.
- The Nifty 50 Futures is a cash-settled contract, which means that no physical delivery of the underlying index takes place.
Instead, investors settle their positions in cash on the settlement date. This is done by the brokerages with which you have an account, and the traded amount will settle T+1, which means trading day + 1. - Nifty50 Futures has expiry on every last Thursday of the month.
- Nifty live futures has three months of contracts at any time. If you are trading in November, November, December, and January, futures contracts will be live to trade on secondary markets.
4) What Time Can You Trade Futures in Indian Stock Exchanges?
Seems like quite a simple question, but can be daunting to the novice trader.
Before we answer this question, my recent blog post about Who Are The Top 10 Brokerage Firms in India to Earn More and Spend Less on Your Brokerage? Go check it out.
On the days of trading, I strictly get up at 6 – 6:30 AM. I’ve always been following my bio time alarm.
I usually keep an alarm, but my bio clock will wake me earlier to turn off the alarm.
So a good habit always takes a long way for the conscious mind to act and work on your behalf.
Come join me to understand the timings for Nifty 50 Futures Trading Hours.
What Time Can You Trade Futures in Indian Stock Exchanges?
SEBI had already passed an order about extending the trading hours!
For some reason, both the stock exchanges shied away from doing just that.
I also created a video for the extended market hours.
SEBI did extend the timings till 11:55 PM. But NSE and BSE did not implement it.
Probably because MCX and NCDEX which are commodity markets already trade till 11:30 PM.
Though the market timing extension was exciting, margins and trends may have dropped a lot.
Hence, I too was a big believer to trade only during the current market hours as Nifty Trend Calculator works well at this time.
A Nifty trend or Bank Nifty trend usually kicks in between 9:30 AM – 11:30 AM and 1:30 – 3:30 PM.
So I was keen to trade morning hours.
So Now Let’s Understand Nifty 50 Futures Trading Hours.
- See Indian Stock Exchanges have a timing of 9 AM – 3:30 PM for timing.
- 9 AM – 9:15 AM is the pre-market hours when the pre-market trades are executed. A pre-market trade means, a trade placed before 8:45 AM to buy or sell a stock.
- Those stocks are executed in pre-market timings 9 AM – 9:07 AM.
- 9:15 AM onwards the full-time trades open to be placed and executed.
So any futures, including nifty 50 futures trading hours can be traded from 9:15 AM – 3:30 PM.
So to sum it up, What Time Can You Trade Futures?
A) 9:15 AM – 3:30 PM
Why is Nifty Futures not allowed to be traded in Pre-Market Trading?
A) Pre-market trading is there to determine Index levels using cash market traded stocks. So any futures for that matter is not allowed to be traded in pre-market trading.
How Much Margin Is Required For Nifty Futures?
A) Well Depends on the brokerage firm. Well explained in my blog post here.
How To Read The Technical Stock Chart for Complete Beginners?
A) Lots of moving parts are required to define this answer. So wrote a blog post. Read here.
Hope this answers your question What Time Can You Trade Futures?
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