Hi

Understanding Index

Hello everybody


I have just started trading

Was surfing and came across this site and saw good discussion on different subjects and new modes of trading especially online trading where brokerage is really cheap.

looking forward for gaining more knowledge with good discussion which will help all investor.

Further I have following qts
1)When we buy a option or future contract of individual stock then we know that there is some actual underlying and final settlement price of those future/option contract will be actual spot price of that underlying in cash market
But in case of index(say Nifty) the underlying is index which is component of different stock(50 stock) which may change during the lifetime of the future contract. Want to know how is the final settlement price calculated for Nifty futureon date of expiry (as the underlying ie the index is just statistical concept)

Hello Clean India, welcome to the thread, I have been trading for almost 6 months now, I hope you enjoy your stay here, sorry I can't understand your question very clearly, but I would suggest stay away from options as a starter as they are very volatile, start trading in cash market once and then go to options for like after 1 or 2 months, best of luck.