QUESTIONS AND ANSWERS ON CHAPTER Q. In Futures Trading, the profits are received or losses or paid 1. In the delivery month 2. On daily settlement 3. On the day of expiry of the contract 4. On a weekly settlement basis. A. The correct…
ELIGIBILITY CRITERIA OF INDICES The exchange may consider introducing derivative market contracts on an index if the stocks contributing to 80 % weight age of the index are individually eligible for derivative trading. However, no single ineligible stocks in the…
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…
DETAILED CONTRACT SPECIFICATIONS FOR INDEX FUTURES TRADING ON THE NSEl-S&P CNX NIFTY FUTURES Underlying Index : S&PCNX Nifty. Exchange of Trading : National Stock Exchange of India Limited. Security Descriptor : NFUTIDX NIFTY. Contract Size : Permitted lot size shall…
QUESTIONS AND ANSWERS ON CHAPTER 4 Q. On 15th January, Mr.Arvind Sethi bought a january Nifty futures contract which cost him Rs.2,40,000. Each Nifty futures contract is for delivery of 100 Nifties. On 25th January, the index closed at 2460.…
FUTURE PAYOFFS Futures contracts have linear payoffs. In simple words, it means that the losses as well as profits for the buyer and the seller of futures contract are unlimited. These linear payoffs are fascinating as they can be combined with…
INTRODUCTION TO FUTURES AND OPTIONS In recent years, derivatives market have become increasingly important in the field of finance. While futures and options are now actively traded on many exchanges, forward contract s are popular on the OTC market. In…
The futures and options trading system of NSE. called NEAT F&O trading system, provides a fully automated screen based trading for Nifty futures and options and stock futures and options on a nation wide basis and an online monitoring and…