# BankNifty Spot & Future price Difference

#### suryameet25

##### Active Member
Yesterday Banknifty closed at 20627 and BankNifty Future closed at 20718

But Today Banknifty Opened at 20630 and Future opened at 20699

AS you can see BankNifty spot opened at +3 but future opened at -19

Why this happen?

Also, Please tell me the spot & future price difference and how to calculate it.

#### travi

##### Well-Known Member
Yesterday Banknifty closed at 20627 and BankNifty Future closed at 20718

But Today Banknifty Opened at 20630 and Future opened at 20699

AS you can see BankNifty spot opened at +3 but future opened at -19

Why this happen?

Also, Please tell me the spot & future price difference and how to calculate it.
Spot is a mathematical calculation of weightage of comprising stocks in the index.
The Futures price is more of a Demand/Supply price equilibrium.
There is no calculation to it.
Generally, Futures premium is highest from days to expiry like Options.

Think of it as interest on the Contract Sellers obligation for holding till expiry.
In physical sense, you buy a contract for 1 ton of cotton from me (Seller),
I'll add a premium to the price for storing it till expiry day when you'll be obliged to take it.

When Futures demand increases(buying sense) premium spikes up and contra Futures being dumped(Selling sense).

BNF can trade at 50pt discount, ie, 50pt less than Spot.
A couple of weeks ago, BNF traded at 400pt discount.

Observe the trend and you'll see the variation of each series.

#### Vjy Chavan

##### New Member
So while trading in bnf option which value to observe ??