Wednesday, 23 August 2017

How To Trade In Nifty Futures

Nifty Future
Nifty futures is a very important trading segment among the derivative market. Nifty futures is the most frequently traded futures tool and now it has become the most liquid contract in the Indian derivative markets. If you are going to trade in nifty futures then you should follow some tips that are as follows-

  • Make a brief study. This is the most important aspect of the derivatives market. The strategy to trade in nifty futures should be differing from other trading segments. For instance, if a security is expected to rise in near future then you place a buy transaction but conversely, you are required to place a sell transaction in nifty futures.

  • Nifty futures require you to constantly maintain your margin amount. As you cannot withdraw this amount from a trading account at any point in time unless the trade is settled. You should always keep the extra amount in your account as the margin amount of the underlying security can be changed at any point of time, whether it rises or falls.

  • You should wait for the contract to settle the trade otherwise at the end you had nothing but to cry over spilt milk. You should be confident in your strategy of trading nifty futures and must time the market to see the true colour of your strategy.

  • Risk management should be an important part of the strategy. Always make strategy after assessing a risk of the security. You should not forget to set stop loss in nifty futures to minimise the risk of loss in case of the adverse market situation.
You should trade with the help of expert advice. If you are not that much of confident over your strategy or want to make your trading more efficient then you should take help of an expert who offers recommendations of nifty futures. 

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