What Is Nifty Futures?A ‘Future’ is a contract to buy or sell the underlying asset for a specific price at a pre-determined timeThus it is forward contract which is a derivative type of instrument in which buyer and the seller are agreed to transact set of financial instrument/ Physical commodities for future at a particular price i.e. if you buy a futures contract, that means you promise to buy something that a seller has not yet produced at a particular price and specific time.If you are entering in future market it is not compulsory that you will have to liable for receiving any delivery (in case of commodities). This is why futures contracts are known as financial instrument.Every futures contract has the following constituents:BuyerSellerPriceExpiryExpiry is the time and the day that a particular delivery month of a futures contract stops trading, as we fiat currency ll as the final settlement price for that contract.Nifty Futures:Nifty Futures is also a financial instrument in which futures contracts are done on the basis of S&P Nifty index which is the benchmark of NSE. Nifty futures are a instrument type of market in which trading is done on the basis of the underlying index S&P CNX NIFTY.Nifty is index of 50 blue chip companies consisting in NSE (National Stock Exchange) and represent the performance of these companies. Nifty covers more than 70% of traded values of stocks in NSE and also it covers around 60% of total market capitalization.Nifty futures trading cycle ?S&P CNX Nifty futures contracts have a maximum of 3-month trading cycle – the near month (1st ), the next month (2nd ) and the far month (3rd ). A new contract is introduced on the trading day following the expiry of the near month contract.
