Hi,
I am totally new to derivative market and trying to understand speculative nature of futures, and have few questions as follows:
1. Say current NIFTY Index is at 1992 and 26-MAY-2005 Futures at Rs.1978. Assuming I already have NIFTY Future of same expiry, When selling the NIFTY Futures, it is traded at Rs.1990 and spot NIFTY Index is at 1992.What price will I be paid? Is it (1990 1978) * Market lot OR (1992 1978)* Market lot ?
2. At what minimum time I can sell them(Future)? Say for stocks delivery I need T+2 days to come into my account, before which I cant sell in normal mode.
3. Can I sell any future at any time ? say I have NIFTY 28-JUL-2005 Futures, can I square off even today in May ?
It looks like Futures are good tool for speculation than just simple margin(day) trading where I have quite a long time frame to avoid any loss and also I need block only margin amount. Please comment.
Thanks
Nirmal
I am totally new to derivative market and trying to understand speculative nature of futures, and have few questions as follows:
1. Say current NIFTY Index is at 1992 and 26-MAY-2005 Futures at Rs.1978. Assuming I already have NIFTY Future of same expiry, When selling the NIFTY Futures, it is traded at Rs.1990 and spot NIFTY Index is at 1992.What price will I be paid? Is it (1990 1978) * Market lot OR (1992 1978)* Market lot ?
2. At what minimum time I can sell them(Future)? Say for stocks delivery I need T+2 days to come into my account, before which I cant sell in normal mode.
3. Can I sell any future at any time ? say I have NIFTY 28-JUL-2005 Futures, can I square off even today in May ?
It looks like Futures are good tool for speculation than just simple margin(day) trading where I have quite a long time frame to avoid any loss and also I need block only margin amount. Please comment.
Thanks
Nirmal