How can we help you?

How to invest in Nifty options?

You are here:
< All Topics

What is Nifty and how to invest in Nifty options?


What is NIFTY?

NIFTY is a famous term linked with the Indian stock market. NIFTY is an index of 50 different stocks divided into different economic sectors. It is an index launched by the National Stock Exchange or NSE. The word “NIFTY” is derived from two words: National Stock Exchange and Fifty. The NIFTY index represents the most traded stocks in the stock market. NIFTY is also a benchmark to measure overall market performance. Accordingly, various baskets of stocks, mutual funds, and thematic investment options use NIFTY as a performance benchmark. The value of this index is calculated based on the weight of each stock in the index. Each share has a different weight, and they consist of the cumulative value of the index. The weight is assigned based on the market value of each share.

NIFTY is not only an index but also available as a derivative contract. Exchanges offer NIFTY futures and options contracts, the real value of which is derived from the underlying value of the NIFTY index, and traders can trade these contracts.

Bank NIFTY Index

Bank NIFTY is an index representing 12 bank stocks that are liquid and well capitalized. It provides investors and market intermediaries with a benchmark that describes the functioning of the Indian banking capital market. The index includes 12 companies listed on the NSE. The Bank NIFTY index roughly reflects the condition of major banks in India and helps measure the performance of the banking sector.

How to invest in Nifty options?

Nifty investment simply means investing in the stocks that make up the Nifty index. An investor or trader can invest in Nifty in various ways.

  1. Spot or Delivery Trading Spot trading is the easiest form of trading. Nifty spot trading means buying one or more shares of 50 Nifty stocks. You buy a stock at a certain price and sell it after the price rises to make a profit on the spot market. It is the same as buying shares on the stock market. That’s what investors do.
  2. Derivatives Trading – Derivatives trading is a form of trading in which the value of the derivatives is derived from the underlying asset. So, the name is derived.
  3. Index Funds – Index funds are a single form of mutual funds. It is a fund that invests in different sectors and makes you a balanced portfolio. Index funds actively invest in the Nifty index along with other market indices. Nifty is a general indicator of market health and hence is becoming increasingly popular among investors. Investors who want to capture the growth potential of Nifty can invest through index funds.

In derivatives trading

The trader speculates that the price of a certain asset may rise or fall depending on the market factors affecting its price. So, they buy a contract that gives them the right to buy or sell the asset at a later date at an agreed price. The exchanges also allow you to trade Nifty derivatives. In addition, it is categorized into two parts.


  • NIFTY Futures Trading – This is a form of derivatives trading where a buyer and seller agree to buy or sell a contract at a pre-agreed date and price. In this case, the buyer or seller is obliged to use the contract at the end of the deadline.
  • NIFTY Options Trading In NIFTY options contract, buyers and sellers agree to buy or sell the Nifty contract in the future at an agreed price. In this case, the option buyers are not obliged to exercise their buy and sell right. If they don’t want to exercise their right, they may not exercise them.


Bank smart options trading is one of the most traded financial instruments in the Indian market. You can open a free Demat and Trading Account with Gill Broking and trade easily with the bank at live Nifty rates.


Was this article helpful?
0 out Of 5 Stars
5 Stars 0%
4 Stars 0%
3 Stars 0%
2 Stars 0%
1 Stars 0%
How can we improve this article?
Table of Contents

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

We are here to assist you !
Fill out the form and Start Trading...