A future contract can be described as an agreement between two parties to buy or sell an asset at a particular time in future at a specific pre decided cost. These future contracts are standardized and exchange traded. A future contract may be exercised or offset before the maturing date. It is a type of forward contract which is a derivative type of instrument in which seller and the buyer agree for transaction of physical commodities/financial instrument for future at a specific cost.
Nifty futures is a financial instrument in which futures contracts are carried out on S & P Nifty index basis which is the benchmark of NSE. Nifty stock is a type of market in which trading is done on the basis of the underlying index S&P CNX NIFTY.
Nifty is an index of 50 blue chip companies of National Stock Exchange (NSE) and represent the performance of these companies. Of the total market capitalization, 60% is covered by Nifty. There are two types of settlements for nifty contracts. One is Mark to Market that takes place on regular basis at the end of each day, and the other one is final settlement which takes place on last trading day of the future contract.
In Mark to Market (MTM) the value of asset is decided according to market prices at the end of each trading day. All nifty future contracts are MTM to daily settlement cost of the relevant future contract at the end of each day. The difference between the trade cost and the day’s settlement cost is what decides the profit and loss. If you aim to earn huge profits then you must try using nifty future tips. Nifty tips from investment adviser India prove to be really helpful in earning maximum profits without a lot of efforts.
All the efforts like research, market study and analysis are done by the investment adviser companies and depending on the study and research they present you with tips. Tips in short are recommendations that tell you whether to buy or sell a nifty stock. You can rely on nifty tips and use them for your investment decisions.
For free trial of nifty future tips, feel free to contact Profit Vista now.
Image source: 3.bp.blogspot.com