Noob Question - Nifty option size

General
1

I am new to Nifty futures options. Are they same as US based futures such as /ES or /ZB where one option controls one underlying future and its monetary value = price*tick size?

Thanks!

2

Not very clear with your question, there is Nifty futures and Nifty options, both derivatives on the underlying which is Nifty. So on the expiry day, all futures and option contracts are cash settled based on where the Nifty closes that day.

1 lot of Nifty : 50

Tick size is : 0.05

So if Nifty at : 8000

If you buy 1 lot of futures at 8000, if Nifty goes to 8001 you make Rs 50 and if it goes to 7999 you lose Rs 50. (Brokerage and charges extra).

Similarly if Nifty 8100 calls is trading at Rs 100, to buy this you will need Rs 5000 ( 50 x 100) and every point then will mean profit or loss of Rs 50.

3

Thanks a ton @Nithin - Exactly the info I was looking for!