18 Questions
What is the difference between a trading holiday and a clearing holiday?
A trading holiday is when the exchange is closed, while a clearing holiday is when the exchange is open but no trading takes place
What is the final settlement price for the May Nifty futures contract?
The closing price of the Nifty index on the last trading day of the contract
What is the contract size for the BSE Sensex futures contracts?
10 units of the BSE Sensex
What is the tick size for the BSE Sensex futures contracts?
Rs. 0.05
How many serial weekly and serial monthly contracts are available for the BSE Sensex futures?
7 serial weekly and 3 serial monthly contracts
What are the trading hours for the equity futures contracts?
9:15 am to 3:30 pm
What is the purpose of daily settlement price in the context of futures contracts?
To settle all open positions daily based on a price calculated by the exchange
When does the May Nifty futures contract cease to trade, based on the information provided?
May 25, 2023
What determines the tick sizes on traded futures contracts?
Exchange's decision as part of contract specifications
How is the daily settlement price calculated for futures contracts?
Using the last half-an-hour weighted average price of that futures contract
What happens to open positions of the May Nifty futures series after its expiration?
They are automatically settled by the exchange
When do monthly futures contracts on the Nifty Financial Services Index expire?
On the last Tuesday of their expiry month
What is the role of the clearing corporation associated with the exchange in futures trading?
Guarantees settlement of trades
In futures trading, what position does a trader take when buying futures contracts?
Long position
What is a key characteristic of futures contracts in terms of quality and quantity?
Quality and quantity are standardized
How do futures contracts differ from forward contracts?
Forward contracts can be customized by the parties involved
What is a limitation of futures contracts in terms of underlying set?
Limited underlying set
How do futures markets determine the terms of a futures contract other than the price?
Through interaction of buyers and sellers
Learn about the concept of final settlement price in futures trading, which is the price at which all open positions in the near-month futures contracts are finally settled on the expiration day. The final settlement price is determined by the closing price of the relevant underlying index or stock in the cash segment on the last trading day of the futures contract.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
