Nifty basic query

megapixel

Well-Known Member
#1
I'm new to Nifty trading. I have two queries. Can anyone please explain.


Q1) Is there Demat to hold Nifty ?

You know for equity there is Demat to hold as long as you wish. Likewise ..is it possible to hold Nifty as long as I wish and sell later to book profit ?



Q2) Is it possible to get Dividend if any stocks in the Nifty announces Dividend ?
 
#3
Nifty is an index, you can't hold it in a demat account and it is not a stock so no question of dividends!

Nifty Futures are for a particular month and on the last Thursday of the month, it expires, so you can't hold on to it forever. You have to dispose of it for this month and then enter again into the trade for next month - or you can even trade with two months ahead...
 
#4
I'm new to Nifty trading. I have two queries. Can anyone please explain.


Q1) Is there Demat to hold Nifty ?

You know for equity there is Demat to hold as long as you wish. Likewise ..is it possible to hold Nifty as long as I wish and sell later to book profit ?



Q2) Is it possible to get Dividend if any stocks in the Nifty announces Dividend ?
u can buy niftybees to hold in your demat..

niftybees declares dividends.:)

http://www.nseindia.com/content/products/prod_niftybees.htm
 

THETRADER

Active Member
#5
Nifty is an Index.
Nifty ETF (Exchange Traded Funds) , like Niftybees, IIFL Nifty, etc., can be bought and sold and also held in D'Mat. These are issued by various funds, like Goldman Sachs, Reliance, Religare, IIFL, etc., These funds in turn invest in securities in Nifty to the equivalent of their ETFs issued.
Nifty Futures is a contract between the buyer and seller with an expiry date. There is no D'Mat as there is no security.
 
#6
First thing, Nifty can not be bought or sold. It's not a stock, it's an Index so One has to buy future or option in it. Now if it can Not be bought then it can not be held in Dmat. As simple as that.

Sent from my Dell Streak
 

megapixel

Well-Known Member
#7
Nifty Futures are for a particular month and on the last Thursday of the month, it expires, so you can't hold on to it forever.

Does it mean I have to trade on last Thursday of the month only ?

OR

I can trade on any day before last Thursday of the month ?
 

FanaticTrader

Well-Known Member
#8
Does it mean I have to trade on last Thursday of the month only ?

OR

I can trade on any day before last Thursday of the month ?
You can very well trade Nifty (Futures) on any trading day of month. It is just that your trade would be squared off on last Thursday of month. If you wish to carry your trade to next month you need to rollover your trade.
 

megapixel

Well-Known Member
#9
You can very well trade Nifty (Futures) on any trading day of month. It is just that your trade would be squared off on last Thursday of month. If you wish to carry your trade to next month you need to rollover your trade.
very nice ... I think you mean if I don't square off before last Thursday of month then it will automatically be squared off on last Thursday of month ( unless I ask for a rollover) ...right ?


Is it same rule for Option expiry also ?
 

FanaticTrader

Well-Known Member
#10
very nice ... I think you mean if I don't square off before last Thursday of month then it will automatically be squared off on last Thursday of month ( unless I ask for a rollover) ...right ?


Is it same rule for Option expiry also ?
Yes...spot on :thumb:
 

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