There is a great announcement for all Derivatives Traders. NSE – National Stock Exchange is going to launch Futures and Options contracts on Nifty Midcap Select Index from 24th January 2022. This index is a focused portfolio of 25 stocks within the Nifty Midcap 150 Index. The index has a base date of October 03, 2005, with a base value of 1000. Currently, it is running around the value of 8000.

Also Read: Sectors & stocks weightage in Nifty Midcap Select Index

Nifty Midcap Select Index will get traded on NSE with the symbol MIDCPNIFTY. As per the contract specifications from NSE, the Futures & Options lot size will be 75 Units. The futures will also have weekly expiry for MIDCPNIFTY. Both Futures contracts & Options contracts will have 3 monthly expiries and 7 weekly expiries. All maturities (Expiries) are on Tuesday. That means, all weekly contracts will mature on Tuesday and monthly contracts will mature on the last Tuesday of the respective month.

On expiry, all contracts will be settled in a cash manner. That means, if a trader has an open position in Futures & Options, the profit amount will be credited and the loss amount will be debited from his account on expiry.

Additionally, traders will get the spread order window. They can trade two monthly or two weekly expiries together in a spread manner to encash the arbitrage opportunities.

Click here to know more about long term investment in Index with safety against market fall.

Happy Investing!

This article is for education purpose only. Kindly consult with your financial advisor before doing any kind of investment.