❓ Question#indices
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Trading Wolf
Trader · · 661 views
What is the difference between Nifty spot and Nifty futures?
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I see Nifty trading at different prices in different places. What is the difference between spot and futures?
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💡 2 Answers
✅Best Answer
MH
Market Hawk
Trader · 15 days ago
Nifty spot is the actual index value (calculated from 50 stocks). Nifty futures is a derivative contract for future delivery — it trades at a premium (usually 50-150 points above spot) due to carrying costs.
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PA
Price Action Pro
Trader · 15 days ago
As expiry approaches, futures price converges to spot. This convergence is called "basis decay" and can be exploited with calendar spread strategies.
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