Download - TRADING , CLEARING AND SETTLEMENT
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THE TRADER WORK STATION
The market watch window
Placing orders on the trading system
Inquiry window
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This enables theuser to input two or
three orders
simultaneously into
the market.
Market spread/combination order entry
These orders will have the condition attached to
it that unless and until the whole batch of orders
finds a counter match, they shall not be traded.
This facilitates spread and combination trading
strategies with minimum price risk.
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Basket trading
A
trading
member can
buy or sell a
portfolio
through a
single order,
once he
determines
its size.The system automatically
works out the quantity of
each
security to be bought or sold
in proportion to their weights
in the portfolio.
This enables the generation of portfolio offline order filesin the derivatives trading system and its execution in the
cash segment.
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FUTURES AND OPTIONS MARKET INSTRUMENTS
Index based futures
Index based options
Individual stock options
Individual stock futures
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Contract specifications for index futures
If trading is for a minimum lot size of 100 units. If the index level
is around 2000, then the appropriate value of a single index futures
contract would be Rs.200,000. The minimum tick size for an index future
contract is 0.05 units. Thus a single move in the index value would imply
a resultant gain or loss of Rs.5.00 (i.e. 0.05*100 units) on an open
position of 100 units.
NSE trades Nifty, CNX IT, BANK Nifty, CNX Nifty Junior, CNX100, Nifty Midcap 50 and Mini Nifty 50futurescontractshaving
one-month, two-month and three-month expiry cycles.
All contracts expire on the last Thursday of every month.
Thus a January expiration contract would expire on the last Thursday ofJanuary and a February expiry contract would cease trading on the last
Thursday ofFebruary
Depending on the time period for which you want to take an exposure
in index futures contracts, you can place buy and sell orders in the
respective contracts.
The Instrument type refers to "Futures contract on index" and Contractsymbol - NIFTY denotes a "Futures contract on Nifty index" and the
Expiry date represents the last date on which the contract will be
available for trading.
All passive orders are stacked in the system in terms of price -time
priority and trades take place at the passive order price (similar to the
existing capital market trading system).
The best buy order for a given futures contract will be the order to buy
the index at the highest index level whereas the best sell order will be
the order to sell the index at the lowest index level.
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Generation of strikes
Conversely, if Nifty closes at around 1980 to ensure strike scheme of 4 -1-4,
two new further contracts would be required at 1940 and 1950.
Suppose the Nifty has closed at 2000 and options with strikes 2040,
2030, 2020, 2010, 2000, 1990, 1980, 1970, 1960 are already available.
It is further assumed when the Nifty index level is up to 4000, t he
exchange commits itself to an inter-strike distance of say 10 and the
scheme of strikes of 4-1-4.
If the Nifty closes at around 2020 to ensure strike scheme of 4-1-4, two
new further contracts would be required at 2050 and 2060.
Conversely, if Nifty closes at around 1980 to ensure strike scheme of 4 -
1-4, two new further contracts would be required at 1940 and 1950.
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Contract specifications for stock futures
Trading in stock futures commenced on the NSE from November 2001.These contracts are cash settled on a T+1 basis.The expiration cycle for stock futures is the same as for index
futures, index options and stock options.A new contract is introduced on the trading day following
the expiry of the near month contract.
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Contract specifications for stock options
Trading in stock options commenced on the NSE from July 2001These contracts are American style and are settled in cash.The expiration cycle for stock options is the same as for index futures
and index options.
A new contract is introduced on the trading day following the
expiry of the near month contract. NSE provides a minimum
of seven strike prices for every option type (i.e. call and put)
during the trading month.
There are at least three in-the-money contracts, three out-of-
the-money contracts and one at-the-money contract available
for trading
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