Stock Future Tips

CONTRACT SPECIFICATIONS FOR STOCK FUTURES:

Trading day in stock futures commenced on the NSE from November, 2001. These contracts are cash settled on trading day basis. The expiration cycle for Stock Futures is the same as for index futures, index options and stock options. A new contract is introduced on the trading day following the expiry of the near month contract.

DETAILED CONTRACT SPECIFICATIONS FOR STOCK FUTURES:

  1. Underlying : Individual Securities.
  2. Exchange of Trading : National Stock Exchange of India Limited.
  3. Security Descriptor : NFUTSTK
  4. Contract Size : As specified by the exchange

(minimum value of Rs.2 lakh).

  1. Price Steps : Re. 0.05.
  2. Price Bands : Not Applicable.
  3. Trading Cycle : The futures contracts will have a maximum of three month trading cycle – the near month (one), the next month (two) and the far month (three). New contract w2ill be introduced on the next trading day following the expiry of near month contract.
  4. Expiry Day : The last Thursday of the expiry month or the previous trading day if the last Thursday is a trading holiday.
  5. Settlement Basis : Mark to Market and final settlement will be cash settled on T+l basis.
  6. Settlement Price : Daily settlement price will be the closing price of the futures contracts for the trading day and the final settlement price shall be the closing price of the underlying security on the last trading day

CONTRACT SPECIFICATIONS FOR STOCK OPTIONS:

Trading in stock options commenced on the NST from July, 2001. These contracts are American style and are settled in cash. The expiration cycle for stock options is the same as for index futures and index options A New contract is introduced on the trading day following the expiry of the near month contract. NSF provides a minimum of seven strike prices for every option type (i.e., call and put) during the trading mon th. There are at least three in-the-money contracts, three out-of-the- money contracts and one at-the-money contract a\ ai iable for trading.

 

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