Like any other futures contract, Nifty Futures is also available in three variants – current month, mid-month, and far month. Here is the snapshot of Nifty Futures Contract – Likewise if the value of Nifty Index declines, so would the Index futures. This means if the value of Nifty Index goes up, then the value of Nifty futures also goes up. Hence the Nifty Futures derives its value from the Nifty Index. In the context of Nifty futures, the underlying is the Index itself. I assume you are comfortable with the basic understanding of the index therefore I will proceed to discuss the Index Futures or the Nifty Futures.Īs we know the futures instrument is a derivative contract that derives its value from an underlying asset. However before we proceed any further, I would request you to refresh your memory on the Index, we have discussed the same here. For this reason, it would make sense to understand Nifty futures thoroughly. Once you get comfortable with futures trading I would imagine, like many of us you too would be actively trading the Nifty Futures. In fact you may be surprised to know that Nifty Futures is easily one of the top 10 index futures contracts traded in the world.
The ‘Nifty Futures’ is the most widely traded futures instrument, thus making it the most liquid contract in the Indian derivative markets. Within the Indian derivatives world, the Nifty Futures has a very special place.
