InvestorQ : What are the unique features of the Bank Nifty Futures contracts traded on the NSE and what are the contract sizes?
Priyanka N made post

What are the unique features of the Bank Nifty Futures contracts traded on the NSE and what are the contract sizes?

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Angel dcosta answered.
2 years ago
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A futures contract is a forward contract, which is traded on an Exchange. BANK Nifty futures Contract would be based on the index BANK NIFTY index.

Contract Specifications

Security descriptor

The security descriptor for the BANK Nifty futures contracts is:

Market type : N

Instrument Type : FUTIDX

Underlying : BANKNIFTY

Expiry date : Date of contract expiry

Instrument type represents the instrument i.e. Futures on Index.

Underlying symbol denotes the underlying index which is BANK Nifty.

Expiry date identifies the date of expiry of the contract

Underlying Instrument

The underlying index is BANK NIFTY.

Trading cycle

BANKNIFTY futures contracts have a maximum of 3-month trading cycle - the near month (one), the next month (two) and the far month (three). A new contract is introduced on the trading day following the expiry of the near month contract. The new contract will be introduced for a three month duration. This way, at any point in time, there will be 3 contracts available for trading in the market i.e., one near month, one mid month and one far month duration respectively.

Expiry day

BANKNIFTY futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.

Trading Parameters

Contract size

The value of the futures contracts on BANKNIFTY may not be less than Rs. 5 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.

Price steps

The price step in respect of BANKNIFTY futures contracts is Re.0.05.

Base Prices

Base price of BANKNIFTY futures Contracts on the first day of trading would be theoretical futures price.. The base price of the contracts on subsequent trading days would be the daily settlement price of the futures contracts.

Price bands

There are no day minimum/maximum price ranges applicable for BANKNIFTY futures contracts. However, in order to prevent erroneous order entry by trading members, operating ranges are kept at +/- 10 %. In respect of orders which have come under price freeze, members would be required to confirm to the Exchange that there is no inadvertent error in the order entry and that the order is genuine. On such confirmation the Exchange may approve such order.

Quantity freeze

The applicable quantity freeze limit shall be based on the level of the underlying index as per the following table:

Index Level

From To Quantity Freeze

Limit

0 5750 15000

5751 8625 10000

8626 11500 7500

11501 17250 5000

> 17250 2500

Order type/Order book/Order attribute

Regular lot order

Stop loss order

Immediate or cancel

Spread order

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