**** A stock index represents change in the value of a set of stocks that
constitute the index over a base year.
An index future is a derivative whose value is dependent on the value of
the underlying asset (e.g. BSE Sensex, S&P CNX NIFTY). While trading on
index futures, an investor is basically buying and selling the basket of
securities comprising an index in their relative weights.
constitute the index over a base year.
An index future is a derivative whose value is dependent on the value of
the underlying asset (e.g. BSE Sensex, S&P CNX NIFTY). While trading on
index futures, an investor is basically buying and selling the basket of
securities comprising an index in their relative weights.