Nifty future are highly popular amongst F&O traders, there are many reason that traders choose to trade Nifty future. But no one can deny the fact that Nifty options have limited risk as compared to nifty futures, I will clear each and every point here to prove this. When you buy nifty options you pay a price know as premium paid, now you are holding this nifty option at the time of expiry this option may become 0 (ZERO). But in nifty future you are required to meet the MTM (Mark to market) at the end of the day, if settlement price is lower than your buy price you need to pay the loss amount for the day and carry position for next day. So if margin of nifty future be Rs. 30,000 and market corrects 700 points in few trading sessions you will lose Rs. 35,000 i.e. more than what you have initially invested. In this way risk in nifty options is low as compared to nifty future.
About Bhaveek PatelBhaveek Patel is technical analyst and investor, his areas of interest includes stock market, forex and gold.
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