The NSE IFSC Nifty IT Index Futures and Options are a new product from Gift Connect that allows investors to trade on the performance of the Indian IT sector. The index is composed of the 30 largest IT companies listed on the NSE, and it provides a way to track the performance of this important sector of the Indian economy.
The Nifty IT Index Futures and Options are traded on the NSE IFSC, which is a new exchange that is designed to attract international investors. The exchange offers extended trading hours, which means that investors can trade on the Nifty IT Index even when other markets are closed.
The Nifty IT Index Futures and Options can be used by investors to hedge their exposure to the IT sector, or to speculate on the future direction of the sector. The contracts are also a good way for investors to gain exposure to the Indian IT sector without having to invest in individual stocks.
How to Trade NSE IFSC Nifty IT Index Futures and Options
To trade NSE IFSC Nifty IT Index Futures and Options, you will need to open an account with a broker who is authorized to trade on the NSE IFSC. Once you have an account, you can place orders to buy or sell contracts.
The contracts are traded in US dollars $, so you will need to have a US dollar account in order to trade them. You will also need to pay a commission to your broker for each trade that you make.
Benefits and Risk of Trading in Gift Nifty IT Index
The Benefits of Trading NSE IFSC Nifty IT Index Futures and Options
There are a number of benefits to trading NSE IFSC Nifty IT Index Futures and Options. These include:
- The ability to trade on the performance of the Indian IT sector.
- The ability to trade during extended trading hours.
- The ability to hedge your exposure to the IT sector.
- The ability to speculate on the future direction of the sector.
The Risks of Trading NSE IFSC Nifty IT Index Futures and Options
As with any investment, there are also some risks associated with trading NSE IFSC Nifty IT Index Futures and Options. These include:
- The risk of losing money.
- The risk of margin calls.
- The risk of volatility.
The NSE IFSC Nifty IT Index Futures and Options are a new product that offers a number of benefits to investors. However, it is important to be aware of the risks involves before you trade these contracts. If you are considering trading NSE IFSC Nifty IT Index Futures and Options, we encourage you to do your own research and understand the risks involved.
Gift / NSE IFSC Nifty IT Index Futures Contract specifications
| NSE IFSC Nifty IT Index Futures |
|---|
| Instrument Type | FUTIDX |
|---|---|
| Underlying Asset | NIFTY IT Index |
| Symbol | NIFTYIT |
| Currency | US Dollars |
| Price Quotation | US Dollars Per Index Points |
| Lot Size | US $ 1 X Nifty IT Index |
| Tick Size | US $ 1 |
| Settlement Type | Cash settled |
| Contract Calendar | Monthly expiring contracts for 3 months Quarterly: Three quarterly expiries (March, June, Sept & Dec cycle) |
| Expiry Day | Monthly contracts: Last Thursday of the Expiry Month Quarterly contracts: Last Thursday of the Expiry Quarter |
| Trade timing | Kindly refer to Trading hours for each instrument |
| Expiry day – Expiring Contract | Trading :6:15 am to 3:30 pm (S1) * (*For latest trading time kindly refer circular) |
| Daily Settlement Price (DSP) | Last half hour VWAP of futures else theoretical price |
| Final Settlement Price (FSP) | Closing Index value on the expiry day |
| Daily Price Limit (DPL) | Operating range of 10% of the base price |
| Initial Margin | Based on SPAN |
| Daily Settlement & Final Settlement | Kindly refer to NSE International Clearing Circular for Daily settlement and final settlementKindly refer to NSE International Clearing Circular for Daily settlement and final settlement |
| Position Limits | Kindly refer to relevant position limits circularKindly refer to relevant position limits circular |
| Spread contracts | The futures calendar spread contracts (2 legged) offered shall be the permutations of the listed monthly / quarterly contracts |
NSE IFSC Nifty IT Index Options Contract specifications
| NSE IFSC Nifty IT Index Options |
|---|
| Instrument Type | OPTIDX |
|---|---|
| Underlying Asset | NIFTY IT Index |
| Symbol | NIFTYIT |
| Currency | US Dollars |
| Price Quotation | US Dollars Per Index Points |
| Lot Size | US $ 1 X Nifty IT Index |
| Tick Size | US $ 1 |
| Settlement Type | Cash settled |
| Contract Calendar | Monthly expiring contracts for 3 months Quarterly: Three quarterly expiries (March, June, Sept & Dec cycle) |
| Expiry Day | Monthly Expiry : Last Thursday of the month Quarterly Expiry : Last Thursday of last month of the quarter |
| Option Exercise | European Style |
| Option Type | Call (CE) & Put Options (PE) |
| No. of Strikes | 15-1-15 |
| Strike Interval | 50 |
| Trade timing | Kindly refer to Trading hours for each instrument |
| Expiry day – Expiring Contract | Trading :6:30 am to 3:30 pm (S1) * (*For latest trading time kindly refer circular) |
| Final Settlement Price (FSP) | Closing Index value on the expiry day |
| Daily Price Limit (DPL) | A contract specific price range based on its delta value is computed and updated on a daily basis |
| Initial Margin | Based on SPAN |
| Daily Settlement & Final Settlement | Kindly refer to NSE International Clearing Circular for Daily settlement and final settlement |
| Position Limits | Kindly refer to relevant position limits circular |
Imp Note: Track Gift Nifty Live Price, Global Market data and FII DII Today Activity to setup for your Intraday/next day trading plan. Moreover track Global Events like RBI Repo Rate, US Inflation and India WPI inflation to setup your positional trades.
