Bank Nifty Futures & Options are derivative contracts traded on National Stock Exchange of India (NSE) whose underlying is Bank Nifty Index.
Putting this simply, Bank Nifty Futures or Bank Nifty Options derives its value from the Bank Nifty index which in turn is dependent upon the movement of top banking stocks. Bank Nifty comprises of the 12 most liquid and large Indian banking stocks which trade on the NSE. Bank Nifty provides investors and market intermediaries a benchmark that captures the capital market performance of Indian banking sector.
Bank Nifty is one of the most tradeable derivatives instrument since the introduction of weekly options and has a lot size of 20. Bank Nifty Futures contracts comprises of three expiry - near month, next month and far month, all of which expires on the last Thursday of every month. Weekly Bank Nifty Options expires on Thursday of every week, whereas monthly Bank Nifty Options expires on the last Thursday of the month. In case if Thursday is a market holiday, all Bank Nifty Futures & Options contracts expires on the previous trading day.
