NIFTY is the leading index in the Indian Stock Market that keeps the record of the large companies on the National Stock Exchange (NSE). NIFTY represents 60% of the total market capitalization and is an index of top 50 companies listed under NSE whose performance of are represented by NIFTY Index. Index futures trading commenced in 2000 on the National Stock Exchange, in India.
Some of the benefits which investors can enjoy by investing in NIFTY are mentioned below:
- Trading done in NIFTY futures enable the investors in speculating the movement of stock indices, stock rates and other financial securities. It also allows them to hedge their position in various stock market instruments.
- Like other futures contracts, Nifty futures contracts also have a three-month trading cycle which includes the near-month, the next month and the far-month. Niftyfutures trading gives the trader greater flexibility in trading compared to the market.
- Investors can trade in Nifty futures by having a margin amount in their account. This margin is a percentage of the contract value. They can make big profits using only margin money.
- The feature of easy liquidity makes investments in Nifty Futures easy to cash even in the dire circumstances.
- One does not need to keep track of the individual 50 stocks as they are required to concentrate on the movement of the Nifty only.
- The Nifty allows a great liquidity for investors as it can be bought and sold the same day.
Investors can make use of the free share tips given by ‘Moksha Stocks’ to make investment in Nifty Futures to earn better profit. We keep a track of the daily movement of the Nifty index and the prices of its 50 constituent companies every day.