Minifty VS Nifty

[columbus]

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.

Thanks . I am TERRIBLY wrong.

 

[kapil123]

Thanks . I am TERRIBLY wrong.

In fact for people with less risk appetite, Mininifty is an excellent option.

Cheers,
Kapil

 

[TFL]

In fact for people with less risk appetite, Mininifty is an excellent option.

Cheers,
Kapil

Dear Kapil,

I don't think its wise for a person to trade in MiniNifty to reduce risk. In reality the risk increases if traded in Mini Nifty as in MiniNifty the volumes are low so the price fluctuates suddenly. If volumes are good its ok to trade in MiniNifty.

Thanks,
Hari.

 

[kapil123]

Dear Kapil,

I don't think its wise for a person to trade in MiniNifty to reduce risk. In reality the risk increases if traded in Mini Nifty as in MiniNifty the volumes are low so the price fluctuates suddenly. If volumes are good its ok to trade in MiniNifty.

Thanks,
Hari.

Dear Hari,

I agree with you. Actually I meant people with less capitalization should start with MiniNifty as the trade value would be less.

Cheers,
Kapil

 

[mammu]

New comers like me its a great exposure to futures path by starting with mininifty.

 

[pankajamity44]

hello there!!!!

 

[mantrivijay]

When u put same amount of money into both minifty and nifty, the returns and losses are going to be the same....

But monetarily there is only one differene..that is...when u squareoff on the same day...brokerage in the case of nifty is less as u will be having less number of lots for nifty than for minifty for same amount of investment. (many brokers charge 15 rupees standard per lot on the buy call of the same day sqareoff)

The advantages with Minifty are

1) Instead of paper trade u can trade with one minifty and learn real time.
2) Better averaging...

 

[Flock]

Advantages MINI Nifty over Nifty:

1. Lower min. capital requirement.
2. You can trade more lots for same capital, so better averaging possible.


Disadvantages:

1. Slippage: I almost never had a problem of getting the price I wanted in Nifty, but in Mini you may lose upto 2 points sometimes due to slippage. Problem becomes worse if you trade anything other than the first month contract.

2. Slightly higher brokerage for the same quantity if your broker charges brokerage per lot.

3. Not enough volumes on the options side especially for far out of the money options. So spreads may be too high.

 

[hari09omkar]

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.

No.In terms of points,columbus was right.NF would have a gain of 40 points(20*2) and Mini would have 100 points(20*5).They don't have a gain of 100 points each for a 2 lots and 5 lots of them respectively.

But the amount in rupee will be equal in both cases,as 1 point in NF is 50 rupees and 1 point in Mini is Rs.20/-.So the net gain for NF will be Rs.40*50 = 2000/-. In Mini, the amount in Rupee will be 100*20 = 2000/-.

 

[hari09omkar]

Thanks . I am TERRIBLY wrong.

Yes.But not in that way.