Sir,
I am interested in investing in Nifty Futures and Mini Nifty but my problem is that I do not know much about the Index Futures.
Just a query to find whether my knowledge is okay for Nifty Futures Trading.
For example I buy Nifty today for 1 month at 4500, what is the amount i have to pay as commission, second if the Nifty goes down by 100 points tomorrow and then goes up by 50 points day after tomorrow and if i sell after day after tomorrow do i make a loss. If i wait for the Nifty to go up and then sell before the expiry of the contract ie. last thursday of the month June, 2009 and if at that time the Nifty is 4650 do i make a profit. Regards,Paul
I am interested in investing in Nifty Futures and Mini Nifty but my problem is that I do not know much about the Index Futures.
Just a query to find whether my knowledge is okay for Nifty Futures Trading.
For example I buy Nifty today for 1 month at 4500, what is the amount i have to pay as commission, second if the Nifty goes down by 100 points tomorrow and then goes up by 50 points day after tomorrow and if i sell after day after tomorrow do i make a loss. If i wait for the Nifty to go up and then sell before the expiry of the contract ie. last thursday of the month June, 2009 and if at that time the Nifty is 4650 do i make a profit. Regards,Paul
You will find answer to your query in this thread
http://www.traderji.com/derivatives/20545-margin-amount.html
If you need more detailed info, then I recommend Google as the best search engine (just select Indian websites as an option).
Here are some websites: http://in.rediff.com/money/2005/may/16perfin.htm
http://www.equitymaster.com/DETAIL.ASP?story=12&date=5/29/2000
As for the math,
4500 - 100 + 50 = 4450
BOSS, if you buy at 4500 and sell at 4450, you are making a LOSS
Similiarly, if you buy at 4500 and sell at 4650, it's a profit of 150 pts.
It doesn't matter WHEN you square off your trade - 1min after buying, or 1 month after buying - just compare your trade initiation/entry price, and trade square off / exit price.