Future and Options Basics Explained : A Beginners Guide | Indian Stock Market Hot Tips & Picks in Shares of India

Financial Daily from THE HINDU group of publications Sunday, Feb 23, Home News News Update Investment World. Investment World - Derivatives Markets Markets - Derivatives Markets Basics of Nifty futures A FUTURES contract is a forward contract, which is traded on an Exchange.

NSE commenced trading in index futures on June 12, NSE defines the characteristics of the futures contract such as the underlying index, market lot, and the maturity date of the contract. The futures contracts are available for trading from introduction to the expiry date. Date of contract expiry: Instrument type represents the instrument i.

Expiry date identifies the date of expiry of the contract.

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It is used for a variety of purposes such as benchmarking fund portfolios, index-based derivatives and index funds. IISL , which is a joint venture between NSE and CRISIL. IISL is India's first specialised company focussed upon the index as a core product.

A new contract is introduced on the trading day following the expiry of the near-month contract. The new contract will be introduced for a three-month duration. This way, at any point in time, there will be 3 contracts available for trading in the market i.

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If the last Thursday is a trading holiday, the contracts expire on the previous trading day. The base price of the contracts on subsequent trading days would be the daily settlement price of the futures contracts.

Futures and Options Virtual Trading Account - NSE Paathshaala (Indian Stock Market)

In respect of orders which have come under price freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine. On such confirmation the Exchange may approve such order. In respect of orders which have come under quantity freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine.

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