Future priceing

Why may future is different than June future.what to know the logic . In what case current June future falls but still may future increases.

The reason for difference is because of

  1. Theoretical price

futures = spot + cost of carry. Cost of carry for a contract having a longer expiry date is higher.

  1. Liquidity/Demand + supply

This may differ based on current/near/far months of future.

Btw, no easy one line answers to these. Check the futures module here

Currently, lets say i expect markets to fall. So I want to buy Nifty 10000 PE.

But if you have to choose between below:

  1. You get paid if markets will fall by May end

  2. You get paid if markets fall anytime before June end

You will choose option 2 coz its give u more time for your prediction to happen, thats why it is pricier