What will happen if Nifty option contract is not squared off?

If you don’t square off, you will have to fill up the margin amount as required by the exchange. By doing so, you can carry the short positions in the options till the expiry.

What is the minimum amount to trade in futures?

Based on the 1\% rule, the minimum account balance should, therefore, be at least $5,000 and preferably more. If risking a larger amount on each trade, or taking more than one contract, then the account size must be larger to accommodate. To trade two contracts with this strategy, the recommended balance is $10,000.

Can I square off futures on expiry?

No. You may not square off the position till the contract expires. In that case, ICICIDirect as well as Exchange would expire your position on the last day on contract after running EOD MTM and your position would be closed at the closing price of the spot (equity) market as per the current regulations.

What happens when futures contract expires?

Upon expiration of the futures contract, the clearinghouse matches the holder of a long contract against the holder of a short position. The holder of the long position must place the entire value of the contract with the clearinghouse to take delivery of the asset.

What is the price step in respect of NIFTY 50 futures contracts?

Download the file for permitted lot size (.csv) The price step in respect of Nifty 50 futures contracts is Re.0.05. Base price of Nifty 50 futures contracts on the first day of trading shall be theoretical futures price.

What is the margin required to buy Bank NIFTY future contract?

Currently, exchange set 8\% margin for bank nifty future contract so money required to buy or sell 1 bank nifty future lot will be 8\% of 9, 44,000/- which comes at +75,520/- rupees. Bank Nifty future current lot size is 40 quantities. And banknifty future current trading price is 23600.

Do nifty and Bank NIFTY go up and down together?

Normally and most of the times, Nifty and BNF tend to go up and down together. Except for a few instances when they go in opposite directions which may be mainly due to individual stock performance. Now regarding your question, I’m assuming that equal lots are being bought for Nifty Futures as well as Banknifty futures.

How much money do I need to buy a nifty future?

Consider if we buy one lot of nifty future. One lot of nifty future has 50 quantities. As said earlier we only pay margin amount and not the full amount, which is very big. Full amount is 2,65,000. But we only need Rs.27,000 as the margin amount to hold one lot of nifty future.