Could you please help us find the accurate information regarding the newly popular Gift Nifty Futures Contract?
Since you and the Dhan team have access to people who are familiar with the subject, I thought it would be easier for you to help the Dhan Forum users become familiar with accurate information regarding this newly introduced trading instrument at the NSEIX exchange.
Are the money stored in INR or USD in the trading accounts at the NSEIX exchange to trade Gift Nifty Futures derivative instrument?
Is the Gift Nifty Futures derivative traded in INR or USD?
Is there a lot size for the Gift Nifty Futures Contract?
What is the total value of the instrument?
How much funds ( SPAN MARGIN ) is required in the trading account at NSEIX to buy 1 lot of the Gift Nifty Futures Contract?
How much funds ( SPAN MARGIN ) is required in the trading account at NSEIX to Short Sell 1 lot of the Gift Nifty Futures Contract?
Sharing another insider of Arbitrage trading in NSE and SGX Nifty (now GIFT Nifty) which possibly only a few people might be aware of.
Mainly big brokers/HNIs operate this way - Float an entity Offshore (mainly Dubai as its easy there). Now with a domestic arm, buy Nifty 50 and Sell Gift Nifty (Gift Nifty is always at a premium). As the multiplier is 3 point something, need to buy 10 lots Nifty 50 and Sell 3 lots of Gift Nifty. Using currency options, the exchange risk was mitigated and at the end of the month, the prices will converge and a trader can earn risk free arbitrage return.
Disclaimer: Do not consider this as a trading strategy or recommendation.
Also considering all the incentives of direct and indirect tax exemption offer on the NSEIX exchange, I can only assume that Christmas has come early for all the HNI traders out there.
