What are stock index futures and options?
A futures or options contract which is based on a set of underlying securities, i.e., the index, is called a `Stock index futures or options contract’. When trading takes place in stock index futures, it means that market participants are taking a view on the way the index will move. By trading in Index-based Futures and Options you buy or sell the ‘entire stock market’ as a single entity. S&P CNX NIFTY S&P CNX NIFTY is the most scientifically developed index. The top 50 blue chip companies have been selected to construct the index. This index covers more than 25 industry sectors and is professionally managed by India Index & Services Ltd. (IISL). IISL has a licensing and co-branding arrangement with Standard & Poor’s (S&P), the World’s leading provider of equity indices, for co-branding IISL’s equity indices. Daily derivatives trading in U.S. based on S&P 500 index alone is over US $ 50 billion. What are the advantages of trading in S&P CNX NIFTY Futures? Trading in S&P CNX NIFTY futu
