Minifty VS Nifty

Though the lot sizes of minifty and nifty are different,at present value of nifty, a gain of 4 points is enough to see you in GREEN in the both cases.Looks quite strange!!!!!Because the lot size ratio is 2.5(50/20).It is WISE to trade in NIFTY futures rather in minifty.Anything wrong in my thinking?

Your margin requirement will be in the same ratio - so effectively makes no difference

sir pls dont mind but that difference is for the ppl who dont hav much finance n capability to take risk

Sir,
It is always wiser for the new comers to trade with small lots. Small position - small risk.

hello to all........

In fact I advise people to trade in minifty rather than PAPER trades.

I am trading Minifty since 4 months as I consider real trading is much preferred than Paper trading. After getting the feel, planning to move over to Nifty.

Cheers

Correct post in wrong thread gentleman.... you should introduce yourself in the INTRODUCTION section.... also please read what all to include in the introductory post in case you wish to have a warming welcome....

Anyways, welcome to this forum....

Regards,

Abhay

Now ,consider a case of 2 Nifty lots and 5 Minifty lots (100 shares in both the cases).Let us assume similar ENTRY and EXIT points.Let us consider a case with a gain of 20 points. In case of Nifty Futures a total gain of 40 (2*20) is obtained whereas in case of minifty the gain will be 100 (5*20).In case of LOSS also it will be SEVERE in case of minifty.

But in case of Minifty ,the chances of AVERAGING is more since they attract LESS margin.If there is sufficient margin amount ,then averaging in Nifty futures is equally possible.Averaging intraday is OK ,but averaging over a period is suicidal.

My friend, looks like you miscalculated, both should be have a gain of 100. 2*50=100 and 5*20=100. Though actual rates may be a point or two off.

So no difference in gains or loss, but Mini nifty trades less volume than nifty so you could see some sudden gaps in movement in MINIFTY but not in NIFTY.