Nifty Tips For Future & Options - Bazarclick

By Author: Andrewjohn
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Nifty is a benchmark index of NSE (National Stock Exchange), which is calculated on the basis of performance of top-50 companies from any of twenty four sectors. These sectors include banking, IT (Information Technology), real estate and healthcare along with various others. On the basis of companies’ performance, 50 companies may be changed. Nifty is owned by IISL (India Index Services & Products), which is a joint venture project between NSE & CRISIL. Nifty is also known as S & P CNX Nifty while the CRISIL is a part of Standard and Poor (S&P).Over the time, it has become one of the most popular platforms for investors in India.

There are two kinds of derivative in Nifty. They are Future & Option. In the future contract, one commits to buy or sell the underlying securities at a future date. This contract is standard & transferrable. It’s considered as a legally binding contract in terms of quality & quantity, place & time of delivery but on a future date. There is an expiry date and an obligation to buy in it. The trading is controlled as well as regulated by SEBI (Securities and Exchange ...
... Board of India). SEBI makes sure that traders dealing do not take control of the market from them and to prevent fraud. There are three ways to settle the future transaction:

• By physically delivering the underlying asset on the date specified.
• If you have been purchasing any future contract, you can square off by selling an identical number.
• The other option is by cash settlement by settling the whole issue by paying the difference between the present price and future rate of the underlying asset.

Under the option contract, the buyer or holder has the right to buy or sell the underlying asset at the predetermined price at end of the period but they have no any kind of obligation to settle the option. They are bound to accept terms of the contract. The underlying asset may be stock, securities or index.The selling option is called the Put option while buying option is called the Call option.When option is applied after the expiry date is known as European option while the option is exercised on or before the expiry date is known as American option.

Whether it’s Nifty Future or Option, there always will be involvements of risk. So, it’s beneficial for the people to avail services of a paramount financial advisory firm, which has been providing very effective & profitable Nifty tips to investors by understanding their specific needs & requirements.

Make your investment in a smart way by getting profitable Nifty tips from a reputed advisory firm.Investors should choose one of the best firms, which have been providing Nifty option tips for many years.