Asked by: Lixiong Sypniewsk
personal finance options

What is Bank Nifty Future?

Last Updated: 14th June, 2020

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Bank Nifty Future is a derivative contract tradedon National Stock Exchange of India (NSE) whose underlying isBank Nifty Index. This means that Bank Nifty futureswill derive its value from the BankNifty index which in turnis dependent upon the movement of top banking stocks in theindex.

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In this manner, what is Banknifty future?

Bank Nifty represents the 12 most liquid andlarge capitalised stocks from the banking sector which trade on theNational Stock Exchange (NSE). It provides investors and marketintermediaries a benchmark that captures the capital marketperformance of Indian banking sector.

One may also ask, what are the banks in Bank Nifty? BANK NIFTY's Announcements

  • ICICI Bank Ltd. Allotment of ESOP.
  • IndusInd Bank Ltd. Analysts.
  • Punjab National Bank. Updates.
  • The Federal Bank Ltd. Strikes.
  • Bank Of Baroda. Shareholders meeting.

Subsequently, question is, how is Bank Nifty Future calculated?

To sell a same nifty options contract, tradershave to pay around = nifty future margin of 58,800/- plus7500 rupee premium amount = 66,300/- rupees. Nifty futureprofit loss will be calculated like this: Niftyfuture buy call 9800 to 9900 minted profit +100 points and its1 point is equivalent to 75 rupees.

Can we buy Bank Nifty?

Like the Nifty, those bullish on banks can buyBank Nifty futures comprising 30 shares, or buy a calloption on Bank Nifty. Bears can similarly short orsell Bank Nifty futures or buy a put option on theindex.

Related Question Answers

Joanes Tiele

Professional

What is Bank Nifty expiry?

BANKNIFTY monthly options contracts expireon the last Thursday of the expiry month and weekly optionscontracts expire on every Thursday of the week. If the lastThursday is a trading holiday, the contracts expire on theprevious trading day.

Antoine Jara

Professional

What is LTP?

Long-term potentiation (LTP) is a persistentincrease in synaptic strength following high-frequency stimulationof a chemical synapse. Studies of LTP are often carried outin slices of the hippocampus, an important organ for learning andmemory.

Vicenta Pertzsch

Professional

What is the lot size of Bank Nifty?

Change in Bank Nifty F&O Lot Size.Effective from today, Bank Nifty lot size has been changedfrom 40 to 20. If you have an existing position with one lotof 40, your position will now be for 2 lots of 20 units. Themaximum size per order (order freeze quantity) remains thesame at 2500 (125 lots).

Khurram Demidov

Explainer

How do you calculate strike price?

In this example, multiply $1 by 100 to get a purchaseprice of $100 for one call option contract. This doesn't getyou the actual stock -- only the right to buy stock. Multiply thestrike price by 100 to calculate the additionalamount you'll pay to use the option to buy or sellstock.

Francisca Weinelt

Explainer

What is LTP in NSE?

Stock trading involves the use of jargon, abbreviationsand insider terms. They take time to learn, but once you know them,financial articles and conversations will make more sense.LTP is one of those abbreviations, standing for "last tradedprice."

Crisogono Gibaja

Explainer

What are futures options?

A futures contract allows you to buy or sell anunderlying stock or index at a preset price for delivery on afuture date. A call option gives a buyer the right topurchase an underlying stock or index at a preset price during acontract's liquid life -- a month or also week in case of BankNifty.

Mattias Olori

Pundit

How many types of Nifty are there?

Full form of NIFTY is National Stock ExchangeFifty. It represents the weighted average of 50 Indian companystocks in 13 sectors and is one of the two main stock indices usedin India, the other being the BSE Sensex.

Clemencio Fligg

Pundit

How nifty is calculated?

It comprises of 50 stocks in its Index. Computation ofNifty: The base year of Nifty is taken as 1978-79 andthe base value is 100. Nifty is calculated by“Free-float market capitalization” methodology andmarket capitalization is calculated by multiplying themarket price of share with number of outstandingshares.

Arwen Masip

Pundit

What is the price of one lot of Nifty?

Understand why different contracts have different lot sized inF&O Markets
Underlying Lot Size Lot Value
Nifty 75 Rs.8.10 lakh
Bank Nifty 40 Rs.10.57 lakh
ACC 400 Rs.5.86 lakh
Asian Paints 600 Rs.7.71 lakh

Yordy Yagual

Pundit

What is nifty future and option?

What are Nifty futures and options? Niftyfutures are a contract that gives its buyer or seller the rightto buy or sell the Nifty 50 index at a preset price fordelivery at a future date. Nifty options are of twotypes —call and put options.

Chaimaa Bencheikh

Teacher

How do you calculate the gain or loss of a stock?

Determining Percentage Gain or Loss
  1. Take the amount that you have gained on the investment anddivide it by the amount invested.
  2. Now that you have your gain, divide the gain by the originalamount of the investment.
  3. Finally, multiply your answer by 100 to get the percentagechange in your investment.

Lalit Ibouroi

Teacher

What is call and put option?

Call and Put Options
If you buy an options contract, it grants youthe right, but not the obligation to buy or sell an underlyingasset at a set price on or before a certain date. A calloption gives the holder the right to buy a stock and a putoption gives the holder the right to sell astock.

Jacoba Gronenberg

Teacher

How can I trade Nifty intraday?

Yes, it is possible to trade nifty or stockoptions intraday. Many traders do it by opening a positionat the start of the day and closing it at the end of market hours.The process to do intraday trade is similar to making anyOptions trade. However, keep an eye on two important data:volume and price fluctuation.

Fidelina Nedyalkova

Teacher

What do u mean by NSE?

The National Stock Exchange of India Limited(NSE) is India's largest financial market. Trading commencedin 1994 with the launch of the wholesale debt market and a cashmarket segment shortly thereafter. Today, the exchange conductstransactions in the wholesale debt, equity, and derivativemarkets.

Aihua Fandos

Reviewer

What is nifty spot?

So Nifty figure is calculated on the bases of 50shares in it which NSE shuffles it time to time as per companyperformance. An index is basically an indicator. It gives you thebasic idea weather most of the stocks/shares are moving up or downso according investors can make position in stockmarket.

Irine Bain

Reviewer

How can I buy a lot in Zerodha?

6 Steps to buying/selling Equity or Nifty Options inZerodha
  1. Visit Zerodha Kite website and login using the ID/passwordgiven in the mail.
  2. Add desired Options to your market watch.
  3. Add Funds to your account.
  4. Place a Buy order for the Option.
  5. Understanding the Options contract.
  6. Check for the execution of the order.

Javed Quaresma

Reviewer

What is CE & PE?

PE = put European. Basically its contract. IF youbuy 5200 nifty CE means you bought contract to buy nifty at5200 at expiry. In India options are cash settled . so at expiry ifnifty is 5300 then 100 is your profit ( - premium i.e. price ofcontract).

Roza Ottino

Reviewer

How many shares are there in Bank Nifty?

The NIFTY Bank Index comprises of the most liquidand large Indian Banking stocks. It provides investors andmarket intermediaries a benchmark that captures the capital marketperformance of the Indian banks. The Index comprises ofmaximum 12 companies listed on National Stock Exchange of India(NSE).

Ikhlef Kunzen

Supporter