An agreement between two parties to buy or to sell an asset on a particular day in future at a pre decided price is called future contract. These contracts are standardized and can be exercised and offset before the date of maturity. It can be called a forward contract where the buyer and seller agree on a financial transaction on any derivative instrument at a fixed price agreed beforehand
Nifty is a index having about 50 well established reputed stocks from 24 sectors better known as S&P CNX Nifty. Trading is built on the underlying index S&P CNX NIFTY in the Nifty stock market. Nifty is managed and owned by the India Index services and Products [IISL] which again is a joint venture project between CRISIL and NSE. NIFTY is also called S & P CNX NIFTY while the CRISIL is a part of Standard and Poor (S&P). Future contracts are done at the Nifty futures on the basis of S & P Nifty index. About 60% of the total market capitalisation is covered by Nifty. Nifty future trades in lots of 50 and its multiples. It has 3 months trading cycle Last Thursday of every month is the settlement day. The settlement price at the end of the day is the closing price for the underlying stock for the day and similarly the final settlement price is the closing price of the underlying stock on the last trading day.
Nifty tips are available for traders trading in the national stock exchange {NSE} index as with some easy tips they stand to gain a lot without loosing. Nifty trading index is safer for the trader than in the stock market. Nifty futures trading gives the trader greater flexibility in trading compared to the market. One need not study the fundamentals of the company where you invested, read their company’s quarterly result and follow the market trend. Nifty future trading is less volatile and the brokerage you pay is lesser. Trading in Nifty is much open and flexible than in market.
You have to research and educate yourself well about the stock market basics. Never trust or believe what you hear. You could land up in the loser’s end. Have confidence in your judgement instead of trusting rumours. You should follow the expert advice given by your broker. Their tips are very useful as it is their business and they have been in the field. There are many online platforms where you can become a member and reap their benefits. There are many advisory companies which provide Nifty tips packages available which you could buy and have happy and tension less trading. But you must strictly follow the instructions as they would presume you did and accordingly they would plan their next step.
The advisory tips package usually has the following features:
- They usually recommend a particular amount as capital anything between Rs.50, 000 to Rs 1, 00,000.
- Give 2 or 3 tips in a day during business hours only
- All communications are through telephone or SMS or yahoo IM
- Track open position and advice accordingly
- Entry and exit messages are sent
- Many claim that their tips were 99 % accurate but it cannot be more than 80% accuracy.
- These are available in packages valid monthly, quarterly, half yearly and yearly.
Discounts and special offers are given to get better market share.
Nifty Tips: They consist of
- Stop loss: It is an order given to the investor to go ahead and buy or sell a security once the price of the dropped or climbed a particular price.
- Target: The analysts extract the tips by analyzing the charts and studying financial statements. You should exit once the target is achieved.
- The lot size should not be changed. Always trade in the same lot quantity.
- Tips are needed as you may not have time to sit the whole day on the system. Tips could help you avoid breaking your head on trading. They are around to do the research and instruct you.
- Tips can be got on your mobile phone but there is the risk of distortion due to disturbances in connection.
Nifty tips are suggestions and recommendations for trading which advices the trader why, when and what amount should be traded at what time.