Hi, I'm trying to venture into derivative trading - especially minifty (nifty) futures. Friends those who wish to trade in Mini nifty Futures, please put your questions, so that this thread becomes useful for newbies in mini nifty/nifty futures.
Please advise on the following:
Going Long or Short on mininifty: Money Required to own a contract:
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1. Initial margin (to own one contract) - is it 8% of the contract value?
2. Span Margin (to balance market-to-market losses) -
3. To own one mininifty contract i have to have Atleast
So, we would need 16210.8 to own one contract of mininifty, right?
Brokerage Issues:
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4. mini nifty contract brokerage:
Expiry/Rollover:
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5. How to Rollover from this month say June 2008 to July 2008 contract? What are the brokerages and other liabilities for rolling over to next month contract?
Please advise on the following:
Going Long or Short on mininifty: Money Required to own a contract:
-------------------------------
1. Initial margin (to own one contract) - is it 8% of the contract value?
i.e., current nifty price x lot size = 4266 * = 85320
(8% of contract value = initial margin) 85320*8/100 = 6825.6
(8% of contract value = initial margin) 85320*8/100 = 6825.6
2. Span Margin (to balance market-to-market losses) -
is it 11% of the contract value?
85320 * 11 / 100 = 9385.2
85320 * 11 / 100 = 9385.2
3. To own one mininifty contract i have to have Atleast
Initial Margin + Span Margin = 6825.6 + 9385.2 = 16210.8
So, we would need 16210.8 to own one contract of mininifty, right?
Brokerage Issues:
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4. mini nifty contract brokerage:
what will be the brokerage for the two cases?
A) If I buy a lot of mininifty 20@4270 for the month end,
and squares off on Last Thursday (let expiry happen)
B) If I square-off intraday
A) If I buy a lot of mininifty 20@4270 for the month end,
and squares off on Last Thursday (let expiry happen)
B) If I square-off intraday
Expiry/Rollover:
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5. How to Rollover from this month say June 2008 to July 2008 contract? What are the brokerages and other liabilities for rolling over to next month contract?