SGX Nifty & its importance:
SGX Nifty, also known as a Singapore Nifty, involves taking position in the Singapore Exchange on Futures contracts . The Futures contracts settlement is based on the NIFTY settlement price in the Indian stock exchange NSE. This gives international investors the flexibility of betting on Indian markets without having to setup or register the entity with the Indian authorities. Since the SGX allows for 24 hour trading via after market trades, investors can hedge their bets at any time. Plus, it is also considered a good indicator to where Indian market will open the next day, due to this a lot of traders follow this to check how SGX Nifty is doing.
SGX – Singapore exchange:
Singapore exchange is the leading exchange of Asia allowing investors to take positions in different products based on the futures which are traded on the exchange. Apart from India the exchange also allows one to take positions in FTSE, China A50 index, MSCI Asia, MSCI Hongkong, MSCI Singapore, MSCI Taiwan ,Nikkei 225, Strait Times etc. Thus, FIIs are able to take positions in all major indices while being in Singapore.
We bring you SGX Nifty Live Chart & Quotes to know expected opening levels of NSE Nifty before the market opens.
SGX Nifty contract specifications:
The derivative contract size of each SGX Nifty contract is:
Contract Size = $2 (USD) * Current Price of NIFTY Index futures price
while the minimum price movement of the futures contract is 1$ which mean it is equal to 0.5 index price moments. The contracts which are available trading can be divided into 2 kinds i.e Monthly contracts and Quarterly contracts . Most of the volumes is concentrated in the monthly contracts. Normally the monthly contracts are available for the 2 serial months e.g in the month of November , trading can happen in November Contracts as well as December contracts. The quarterly contracts of SGX Nifty are March, June, September and December.The contracts are cash settled based on the closing price of S&P NIFTY index as on 6:00pm Singapore time or 3:30 pm Indian Time. The closing price of Nifty index is based on the average of the last 30 mins of trading and is not the final value of the index.