Whis is the preferable trading cycle in Index/Equity Futures contracts for newbies - Near month, next month or far month ?
hello trader,
In terms of risk, Far Month contracts are less riskier provided you are trading in a liquid strike price range. Avoid 50’s In this case even if you make a mistake in analyzing the trend, you get sufficient time to exit without much damage.
But don’t far month contracts have very low liquidity? And if he trades in a far month contract, how will this help him get a grip on the current month contract? Eventually his far month contract will become near and then current and the volatility will be restored.
Just food for thought.
Far month NIFTY contracts closer to ATM strike price , will have sufficient liquidity to accommodate a beginner.