Which of the two has more return potential and less risky: Stock futures or Nifty futures? Give reasons

If you get your view right, Stock futures have higher return potential, as the moves can be quite fast, unlike an index like Nifty which is much slower as it moves based on what a basket of 50 stocks together does.

A stock can very easily say go up or down by 20% in a month, and if you are in the right direction, that could mean higher returns. An index on the other hand, a 20% move up or down, would probably never happen in a month.

But the flip side is that stock futures are a lot more riskier than Nifty futures. When you trade Nifty, the only risk you take is Market risk which is distributed among probably the 50 most pedigree stocks. But when you trade Individual stocks, you take a risk of Market, Insider (people knowing about the stocks more than u), Corporate governance (Scams, and etc), among others.


Nifty Futures is more safer than stock futures because if stock goes at right direction you will survice but if it goes reverse then you can loose much. In nifty there are 50 stock which gives average of it.