Are you confused about what exactly SGX Nifty is?, what is its importance in trading?, is That Something We Can Trade?.
Well, then you have came to the right place. In this article, you will learn everything that is there to know about SGX Nifty.
What is SGX Nifty?
SGX means Singapore stock exchange and Nifty means our Nifty50 index. SGX Nifty is the future contract of our nifty, which is trading on the Singapore stock exchange. That’s why it is called SGX Nifty.
Why is Nifty futures trading in Singapore stock exchange?
Indians trade Nifty futures on the Indian stock exchange.
Foreigners trade SGX Nifty on the Singapore stock exchange. Because of strict Indian regulations, it is impossible for foreign investors and mutual funds to trade in Indian derivatives( derivatives mean options and futures).
Those who live outside India, can’t trade Nifty futures in the Indian stock exchange. Therefore they trade in SGX Nifty.
Why foreign investors trade in SGX Nifty?
Foreign investors and mutual funds of many countries, have a lot of investments and have a significant portfolio in India. Because India is a growing economy, and to protect their portfolio against some unlikely events or overnight news, they create hedging positions in it.
In Singapore there are two trading sessions:
One is the ‘T’ session, which opens at 9:00 AM and Closes at 6:10 PM in Singapore time.
Singapore time is 2 hours and 30 minutes ahead of India.
In Indian timings, it is 6:30 AM to 3:40 PM.
The second session is the ‘T+1’ session, which opens at 6:40 PM and closes at 5:15 Am.
In Indian timings, it is 4:10 PM to 2:45 AM.
Where to track
Go to the money control Website, then the section of the global market, there you can find it.
Trading price X 2 dollars.
For example, if it is trading at 15000 then:
Contract size = 15000 X 2 dollars .
Can we trade?
The answer is no, Indians are not allowed to trade any derivatives outside of India. But if you are an NRI, you can trade.
It gives us a signal of how Indian markets are going to open. So That, traders can prepare their strategies before the market opens.
As it is open for almost 20 hours. After our market closes, if there is any uncertainty around the world, or in India. The impact will be shown on SGX nifty. So, it will give us a signal of how nifty will perform after the Indian market opens.