Hi Zerodha & Every Fellow Traders
I am gonna ask a simple but "may be" a stupid question, PLEASE DO NOT LAUGH AFTER READING MY QUESTION, EVEN SMILING IS NOT ALLOWED.
When one buys or sells a stock, it comes from a different trader either borrowed or else, anyways, it is a known subject to almost everyone. But when one buys or sells Nifty Future, where it comes from "originally" ??? I was always wondering it !!! For example, suppose Trader X buys one lot Nifty Future, then there must be a Trader Z to sell the same, but from the very beginning, who sold the same Nifty Future to Trader Z or Y or X ???
Can anybody confirm the process please.
Cheers
shekhar
I am gonna ask a simple but "may be" a stupid question, PLEASE DO NOT LAUGH AFTER READING MY QUESTION, EVEN SMILING IS NOT ALLOWED.
When one buys or sells a stock, it comes from a different trader either borrowed or else, anyways, it is a known subject to almost everyone. But when one buys or sells Nifty Future, where it comes from "originally" ??? I was always wondering it !!! For example, suppose Trader X buys one lot Nifty Future, then there must be a Trader Z to sell the same, but from the very beginning, who sold the same Nifty Future to Trader Z or Y or X ???
Can anybody confirm the process please.
Cheers
shekhar
There might be no one....yes no one...
when Z ....sells to X.....it creates 1 open contract..
then X sells to Y......here X closes it postions ....open contract remains same i.e., 1
On expiry day ....Those open contracts are closed ...adjusting profit/loss...and new month starts with new contract....and again cycle begins...
NSE publishes open contract ......called open interest...