Home Finance A Beginner’s Guide to Bank Nifty Futures Trading

A Beginner’s Guide to Bank Nifty Futures Trading

by thetechw
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Bank Nifty index was introduced in 2009, and since then, it has managed to become one of the most popular derivatives indexes in the derivative market. Bank nifty consists of 12 constituents that are from the baking sector. Because of the higher liquidity that Bank Nifty offers, it is one of the most sought-after indexes among derivative traders. 

If you also want to understand how to undertake future trading for Bank Nifty, you have come to the right place. So, let’s get started. 

We see so many tutorials around the Bank Nifty trading course or scalping trading course for futures. Today’s blog will teach us how bank nifty futures can be used effectively. 

What is Bank Nifty Futures?

Bank Nifty futures are standardized contracts made up of banking constituents and are traded on the NSE. Bank Nifty comprising of banking stocks is often used as a benchmark by many money managers to compare the performance of their banking stocks.

Just like the standard futures contract, Bank Nifty futures are used to express the view on the banking sector. 

Traders can trade bank nifty futures with the help of any brokerage account and post the required margin with the broker according to the exchange norms.

Many traders also take long/short futures positions in Bank Nifty to hedge their portfolio following it as a benchmark. As a trader, you can use futures contracts to trade intraday or take positions for a few days to express your view on the banking sector.

However, you must be cognizant of the fact that taking a position in the banking sector can increase your concentration risks. Any big correction in this index might affect your portfolio adversely.

On the flip side, any positive developments can aid your portfolio and generate gains.

Futures are high-ticket transactions and are settled MTM (daily profit and loss settlement takes place). Your position in the futures contract is determined by the daily closing prices of the index. 

Futures are used for multiple purposes like trading for intraday, hedging, and many traders use futures to scalp where they trade in seconds to take advantage of mispricing. 

Learn About Bank Nifty Futures

While knowing the depth of the futures market is good, it is equally important to apply it to specific indices. Bank Nifty as an index has its own dynamics. It is imperative to learn the dynamics of Bank Nifty trading course. Upsurge.club provides scalping and a bank nifty intraday futures strategy course. Course offers:

  • Introduction to Bank Nifty Futures
  • Know Bank Nifty futures dynamics
  • Building the Bank Nifty futures strategy

Learning it from the practitioners works as a boon and you get exposure to real-world scenarios.


After learning about the dynamics of Bank Nifty futures, it is important to backtest your strategy and see how it has performed in the past with different market conditions. Futures are different than options and require a different approach. Learning in the right direction will give you an edge in your futures trading journey.

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