Factors that make nifty futures a better option

Nifty index is a basket of 50 stocks that are selected to represent a wide section of the economic sectors. This makes nifty a good representative of the broader economic activity in India. Trading the Nifty futures is a much better choice as compared to single stock futures.

There are various reasons which make nifty futures a better option some are as follows-

1.    Highly liquid- Nifty is highly liquid, you can transact any quantity of nifty without worrying about losing money on the impact cost. Despites, there is so much liquidity you can transact any number of contracts of your wish.

2.    Less volatility- Nifty futures are less volatile as compare to individual stock futures. Nifty futures have an annualized volatility of around 16-17%.

3.    Diversified- Nifty futures have a diversified portfolio of 50, thus the movement of the stock does not really depend on a single stock. You can completely eliminate unsystematic risk if you are trading in nifty futures. You will trade only with the systematic risk.

4.    Not easily manipulated- The nifty moves in a response to the collective movement in the top 50 companies in India. There is no scope to manipulate the nifty index.

5.    Less margins- There is need a much lesser margins in nifty futures as compared other individual futures.

6.    Technical analysis- Technical analysis has best use in liquid instruments. Liquid stocks are hard to manipulate, therefore they move based on the demand supply dynamics of the market.

MoneyClassic Investment Advisers is the leading company providing tips on various market segments including nifty futures. We offer accurate tips based on market research and also deliver that to traders on time. 

Hence, if you also want to make huge profit in nifty futures then you can also take assistance from us.