SGX Nifty is a derivative of the Nifty index and is traded on the Singapore stock exchange platform. Just like, Indian Nifty trades on the NSE, which is the Indian stock exchange platform, the SGX Nifty is the futures trading of Nifty equivalent in Singapore.

Many traders would like to monitor the SGX Nifty before the opening bell of Indian stock markets. Quantsapp helps them with providing that necessary cue of SGX Nifty Futures Live, as to where the Indian markets, especially Nifty 50 is likely to open. The global presence of investors in India makes the availability of SGX Nifty very important. Getting an indicative price most importantly and trading in Nifty is very useful especially in hours when NSE is not open. 

Market participants also at times, take advantage of mis-pricing on different exchanges and swiftly move in and out of trades. A bit about market participants, as we move ahead.

There are three types of participants in the derivatives market - hedgers, speculators (also called traders) and arbitrageurs.

They face business risk associated with the prices of underlying assets and use derivatives to reduce their risk to the underlying price volatility. Corporations, investing institutions and banks all use derivative products to hedge or reduce their exposures to market variables such as interest rates, share values, bond prices, currency exchange rates and commodity prices.

Speculators are market participants who possess the view of the underlying asset, either bullish or bearish; hence take a position in derivatives market. Derivatives offer leverage which help traders to earn manifold returns.

Arbitrageurs are market participants who observe a price difference in a product in two different markets and exploit the same. Arbitrage arises when a trader purchases an asset cheaply in one location and simultaneously arranges to sell it at a higher price in another location. Such an opportunity doesn’t last long in the financial system, as many participants would rush in to close the price gap of the different locations.

These participants may be in the form of proprietary desks, foreign institutional investors (FII), Domestic Institutional investors (DII). Foreign Institutional Investors and Domestic Institutional Investors are a strong force in the financial markets to reckon with.

Their activities are monitored by most traders to gauge institutional sentiment or in other words, what smart money is thinking?

FII statistics have been proven pivotal in predicting the institutional sentiment over the years. But the share of retail, high net worth individuals (HNI), and domestic mutual funds (DIIs) have also increased, consistently.

Quantsapp helps in analysing participant data using metrics like Open Interest/Volume of Index futures/options, stock options/futures based on their gross long/short values or net values. A bird’s eye view of FII/DII/Proprietary/Client accounts is an essential think-tool for traders.

Futures trading = Leverage

The word comes from the French word, lever, to lift up.

If you’ve used a lever to move a heavy object, you know the force is amazingly powerful. Investors use leverage to multiply their buying power in the market. As initial margin suggests, in order to buy 1 futures contract, the trader needs to pay only a small percentage of the total value of the contract, one could think of it as, larger exposure to an underlying asset with very small initial margin. This is leverage, gains and losses in such scenarios is manifold.

An illustration: If the initial margin on Nifty Futures is 10%. This implies that if the underlying NSE index returns 10%; due to leverage (as one doesn’t pay the entire amount) in futures contract the percentage returns would be magnified to Nifty returns*100/initial margin, i.e., 100% in this example.

Singapore is the country where SGX Nifty futures trade, they are traded on Singapore Exchange.

SGX NIFTY trades from 6:30 AM to 11:30 AM (IST), on working days and not on weekends. On weekends the Singapore exchange is closed.

SGX Nifty is the proxy security of NSE Nifty traded on Singapore exchange. The global presence of investors in India makes the availability of SGX Nifty very important. Getting an indicative price most importantly and trading in Nifty is very useful especially in hours when NSE is not open. SGX Nifty is available to track and trade almost for the entire day. It starts at 6:30am IST to 03:40pm IST and then from 4:10pm – 2:45pm. It is crucial to be updated with all the analytics that prepare us well in advance for our trade. One could check out updated prices of SGX Nifty especially in after market hours on https://web.quantsapp.com/sgx-nifty?symbol=NIFTY in one easy click This round the clock availability gives a good indication of what would be the impact on NSE when it opens. As the index traded in Singapore must have already started discounting the good or bad news in its prices.

Indian citizens aren’t allowed to trade in SGX Nifty futures.

Singapore Exchange (SGX) Nifty is a derivative investment product based on India National Stock Exchange (NSE) Nifty 50. Only Foreign Portfolio Investors, NRIs and others (apart from Indian
citizens) can participate on SGX Nifty.

No, SGX Nifty trades on working days and not on weekends.

SGX NIFTY trades from 6:30 AM to 11:30 AM (IST), on working days and not on weekends. On weekends the Singapore exchange is closed.

Arbitrageurs are one who establish two offsetting trades to benefit from market pricing inefficiencies. Sometimes the price of a stock in the cash market is lower and sometimes it is higher compared to the similar asset price (for example in futures market). The arbitrageurs exploit such opportunities by buying at one market and selling at the other market place or exchange.