HOW IS TRADING DONE IN NIFTY

• Trading is done on Nifty contract which is also called as Nifty future derivative.
• Nifty Lot Size - Nifty derivative consist of a lot of 50 quantities of Nifty. So if you want to buy Nifty contract then you have to buy at least one lot. The trading in Nifty contract is done in lots.
•  Nifty Expiry -The Nifty derivative expires every last Thursday of the month. In India we have three month future derivatives for trading.
•  Based on your trading position your account will get adjusted on daily basis as per the closing price of Nifty derivative contract....

For Example - If you buy one lot of Nifty at 4950 and Nifty closes at 4500 then Rs 50 as profit (total profit will become 50 qty x Rs 50 = Rs 2500) will get credited in your account. On the other hand if Nifty went down Rs 50 then Rs 2500 will be debited from your account.

• If you buy and sell on a same day then the profit and loss will be adjusted in your trading account accordingly.
• Trader has to square off the positions before or on expiry. If you does not square off then the contract expires on the expiry date and the money gets adjusted in your account.