Index Trading through cash segment

General
1

Is it possible to do intraday in cash segment in any index?
If possible how…

2

Hey @vaibhavi_Shah

One way to do it would be through ETFs. However liquidity on these is low. So intraday trading will have a lot of slippage.

For Ex:

For NIFTY - there is SETFNIF50, NIFTYBEES
For BNF - there is BANKBEES

1 Like
3

Hi @vaibhavi_Shah,

There is no cash segment in index because the underlying asset is the index, not any particular stock. In other words, you can buy 10 shares of Infosys in the cash segment because you’re becoming a shareholder of a company but you can’t buy shares of Nifty because it’s just a weighted average of 50 stocks.

If you’re reluctant to trade in index futures because of higher risk, you should definitely check out their options. Nifty and Banknifty options have decent liquidity, especially the ones near/at the money.

-Neha (vrdnation.com)

1 Like
4

You can trade Niftybees which are approx 1/10th of Nifty index value. They can be bought and sold like stocks. And Bankbees as a proxy for Bank nifty.

5

Thank you