Derivative contract

Can anyone tell me about what happened to the derivative contracts on 6th october 2012 when nifty suddenly crashed 15% and recovered with few minutes.Did traders experienced huge looses after the nifty recovered as risk management system would square of the position once position exceed margins limit?

The fall happened in the Nifty index, not as much on the futures contract. Fall in Nifty was triggered due to a big fall in underlying stock due to fat finger error from a dealer working with a brokerage firm. Markets recovered instantly. Some positions would have gotten squared off, but since it came back up almost instantly, everything was back to normal.

It is hence best to have extra cash always when trading, acts as a margin of safety when things like these happen.